What does repayment mean?
Repayment is the paying back of money or the fulfilling of an obligation that has been incurred, most commonly in relation to a loan, debt, or advance. It can describe either the act itself or the money paid back: a borrower may arrange repayments, agree to a repayment schedule, or make a final repayment. In broader figurative use, repayment can mean returning something of value or compensating for harm, although this usage is less frequent than the financial sense. The word is common in formal and professional contexts, including banking, contracts, public policy, and debt management. It is closely related to “reimbursement,” but repayment more specifically suggests money being returned after a debt has arisen. Understanding repayment is useful when reading loan agreements, assessing financial obligations, and describing the settlement of obligations in legal, economic, and personal contexts.
nounThe act of paying back money that has been borrowed or received. It can also refer more generally to making good a debt or obligation.
- The payment of money that has been borrowed or is otherwise owed.
- The act of satisfying a debt or obligation by paying it back.
"The company used part of its profits for the repayment of its outstanding loans."
"The borrower agreed to make monthly repayments until the loan was paid in full."
"The restoration of the wetland was undertaken as repayment for the environmental damage it had caused."
The plural is used for individual payments or for the overall set of payments made against a debt.
"The borrower made twelve repayments over the course of the year."
Repayment turns a temporary advantage into a settled obligation: what is borrowed must eventually be returned.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does repayment come from?
“Repayment” was formed in English by adding the suffix “-ment” to “repay,” indicating an act or instance of paying back. “Repay” comes through Old French from Latin elements meaning “back” and “to pay or make peace,” reflecting the idea of returning what has been received. The English family includes “repay,” “repaid,” and “repayable,” while related forms such as “payment” belong to the broader vocabulary of paying and settling obligations.
Related word forms
How repayment is actually used
Formally, it is often used with money, loans, debts, or obligations. In financial contexts, “repayment” generally emphasizes the act of paying money back, while “payment” can refer to any payment, including one made for goods or services.
Easily confused with repayment
Repayment usually refers to returning money that is owed, especially a loan or debt, whereas reimbursement more generally means paying back money that someone has already spent or advanced.