What is an amortising loan ?

A loan is said to be amortisable when repayments are made in regular instalments that cover both the capital and the interest.

A loan is said to be amortisable when repayments are made in instalments (monthly, quarterly, half-yearly or annually, depending on the project) that cover both the capital and the interest. Over the course of the repayments, the proportion of interest gradually decreases while that of the capital increases. This type of repayment differs from repayment at maturity, which involves repaying the interest monthly, quarterly, half-yearly or annually, and then paying the capital in full on the maturity date.