Interest definition: Copy, customize, and use instantly
Introduction
The term "Interest" refers to the cost of borrowing money or the return earned on investments, typically expressed as a percentage. It is essential for defining the financial obligations or benefits related to loans, credit, or investments in agreements.
Below are various examples of how "Interest" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Interest" as accrued loan cost
This definition ties "Interest" to the cost accrued on borrowed funds.
"Interest" means the amount calculated as a percentage of the principal loan amount, accrued periodically and payable by the borrower to the lender under the terms of this agreement.
Definition of "Interest" as return on investment
This definition connects "Interest" to the earnings from invested capital.
"Interest" refers to the income earned on invested funds, calculated as a percentage of the principal amount over a specified period.
Definition of "Interest" as a default penalty
This definition links "Interest" to penalties for late payments.
"Interest" means the penalty fee calculated on overdue amounts, at the rate specified in this agreement, compounded daily or monthly until payment is received.
Definition of "Interest" as simple interest
This definition applies "Interest" to a straightforward calculation based on the principal.
"Interest" refers to the charge calculated on the principal amount only, without compounding, at a fixed rate over the agreed term.
Definition of "Interest" as compound interest
This definition ties "Interest" to a compounding calculation that includes accumulated interest.
"Interest" means the charge calculated on the principal amount and any previously accrued interest, compounding at regular intervals as specified in this agreement.
Definition of "Interest" as prepayment charges
This definition ties "Interest" to charges incurred for early repayment of a loan.
"Interest" means the additional charge imposed on the borrower for prepaying all or part of the principal amount before the agreed-upon repayment schedule.
Definition of "Interest" as an annual percentage rate (APR)
This definition connects "Interest" to its representation as an annualized rate, including fees.
"Interest" refers to the annual percentage rate (APR), encompassing the cost of borrowing expressed as a yearly rate, including applicable fees and charges.
Definition of "Interest" as a floating rate
This definition links "Interest" to rates that fluctuate based on market indices.
"Interest" means the variable rate calculated based on a benchmark index, such as LIBOR or SOFR, plus a margin, adjusted periodically as specified in this agreement.
Definition of "Interest" as fixed rate charges
This definition applies "Interest" to charges calculated at a constant rate.
"Interest" refers to the fixed percentage rate applied to the principal amount throughout the loan term, as detailed in this agreement.
Definition of "Interest" as interest on arrears
This definition ties "Interest" to charges on overdue financial obligations.
"Interest" means the amount charged on outstanding overdue balances at the default rate specified in this agreement, accruing from the due date until full payment.
Definition of "Interest" as capitalized charges
This definition connects "Interest" to amounts added to the principal balance.
"Interest" refers to accrued charges that are capitalized by being added to the principal balance and subsequently subject to additional interest calculations.
Definition of "Interest" as deferred interest
This definition links "Interest" to charges postponed for a future date.
"Interest" means charges that are accrued but deferred for payment at a later specified date, as agreed upon in the terms of this agreement.
Definition of "Interest" as an incentive for early payment
This definition applies "Interest" to discounts offered for early settlement.
"Interest" refers to the discount or reduced charge provided to incentivize early repayment of amounts owed under this agreement.
Definition of "Interest" as penalty for breach
This definition ties "Interest" to charges imposed for contract breaches.
"Interest" means the financial penalty calculated on amounts owed due to a breach of contractual obligations, as defined in this agreement.
Definition of "Interest" as periodic income
This definition connects "Interest" to regular earnings from financial instruments.
"Interest" refers to the periodic income earned on bonds, loans, or other fixed-income securities, calculated at the agreed rate and paid on scheduled dates.
Definition of "Interest" as accrued daily charges
This definition ties "Interest" to charges calculated and accrued on a daily basis.
"Interest" means the amount calculated on the outstanding principal daily at the specified rate, accruing until payment is received.
Definition of "Interest" as a profit-sharing mechanism
This definition connects "Interest" to returns earned through profit-sharing arrangements.
"Interest" refers to the portion of profits allocated to an investor or lender, calculated as a percentage of the agreed-upon profit-sharing arrangement.
Definition of "Interest" as tax-deductible charges
This definition links "Interest" to charges eligible for tax deductions under applicable laws.
"Interest" means charges incurred on borrowed funds that qualify for tax deductions, subject to the rules and regulations governing tax filings.
Definition of "Interest" as accrued investment growth
This definition applies "Interest" to growth accrued on investments over time.
"Interest" refers to the accumulated earnings on an investment, calculated periodically based on the principal and applicable rate.
Definition of "Interest" as the rate on credit facilities
This definition ties "Interest" to the rate applied to utilized credit facilities.
"Interest" means the percentage rate charged on the utilized portion of a credit line or overdraft facility, calculated according to the terms of this agreement.
Definition of "Interest" as compensatory charges
This definition connects "Interest" to charges imposed as compensation for delayed payment.
"Interest" refers to charges imposed on delayed payments as compensation for the time value of money and additional administrative costs incurred by the creditor.
Definition of "Interest" as promotional rate incentives
This definition links "Interest" to temporary rates offered during promotional periods.
"Interest" means the reduced or introductory rate applied during the promotional period, which may revert to the standard rate after the period ends.
Definition of "Interest" as accrued liabilities
This definition applies "Interest" to liabilities accrued but not yet paid.
"Interest" refers to the amount owed on accrued liabilities, including loans or debts, calculated but unpaid as of the reporting date.
Definition of "Interest" as amortized charges
This definition ties "Interest" to charges spread over the repayment schedule.
"Interest" means the amount calculated and included in regular installment payments, amortized over the term of the loan or financial obligation.
Definition of "Interest" as financing costs for deferred payments
This definition connects "Interest" to the costs associated with deferred payment arrangements.
"Interest" refers to the charges incurred as financing costs for deferred payments, calculated based on the principal amount and the deferred payment term.
Definition of "Interest" as accrued yield on deposits
This definition ties "Interest" to the earnings accumulated on deposit accounts.
"Interest" means the yield earned on deposited funds, calculated at the agreed rate and credited periodically to the depositor’s account.
Definition of "Interest" as a penalty for early withdrawal
This definition connects "Interest" to charges incurred for withdrawing funds before a specified maturity date.
"Interest" refers to the penalty charged for early withdrawal of funds from time-bound investments, reducing the total return earned.
Definition of "Interest" as periodic rent on capital
This definition links "Interest" to periodic payments made for the use of capital.
"Interest" means the periodic payment made for the use of borrowed capital, calculated as a percentage of the principal balance over the specified time frame.
Definition of "Interest" as cost of credit utilization
This definition applies "Interest" to the cost incurred for utilizing a credit facility.
"Interest" refers to the cost incurred by the borrower for utilizing credit, calculated on the amount drawn from the facility at the agreed rate.
Definition of "Interest" as compensatory damages
This definition ties "Interest" to charges imposed as compensation for delayed obligations.
"Interest" means the compensatory charges imposed on late payments or delayed obligations, calculated at the rate specified in this agreement.
Definition of "Interest" as incentive-linked earnings
This definition connects "Interest" to additional earnings linked to performance incentives.
"Interest" refers to earnings calculated based on specific performance-linked incentives or milestones achieved under the terms of the agreement.
Definition of "Interest" as negotiated variable rates
This definition links "Interest" to rates negotiated between parties subject to periodic review.
"Interest" means the variable rate agreed upon by the parties, subject to periodic adjustments based on market conditions or contractual terms.
Definition of "Interest" as cumulative accruals
This definition applies "Interest" to cumulative charges that accumulate over the term of the agreement.
"Interest" refers to cumulative charges that accrue over time on the outstanding principal balance, compounding at the agreed rate.
Definition of "Interest" as opportunity cost compensation
This definition ties "Interest" to compensation for the opportunity cost of delayed funds.
"Interest" means the amount paid to compensate for the opportunity cost associated with delayed funds or deferred financial obligations.
Definition of "Interest" as rates applied to revolving credit
This definition connects "Interest" to rates applied on balances within revolving credit facilities.
"Interest" refers to the charges applied to the outstanding balances of revolving credit facilities, calculated at the agreed rate and accrued until repayment.
Definition of "Interest" as a charge for installment plans
This definition ties "Interest" to the additional cost of using installment payment options.
"Interest" means the cost charged for opting into an installment payment plan, calculated based on the unpaid balance over the installment period.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.