Tilgungsrate

repayment rate

noun TIL-goongs-rah-teh Rare

Also means

amortisation instalment

Usage Note

Tilgungsrate is the periodic amount by which a loan's principal is reduced. German mortgage contracts specify an initial Tilgungsrate (e.g. one or two percent per annum); combined with the interest payment it forms the total Annuität (annual instalment).

Examples

"Eine höhere Tilgungsrate am Anfang verkürzt die Laufzeit des Darlehens erheblich."

Natural Translation

A higher repayment rate at the start shortens the loan term considerably.

Literal Translation

A higher repayment-rate at-the start shortens the duration of-the loan considerably.

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