What Is Amortisation

Amortisation is a financial principle that entails distributing the repayment of a loan into a sequence of consistent payments over a period. This approach finds extensive application in both business and personal finance, serving diverse purposes. In the business context, amortisation commonly addresses the depreciation of intangible assets, such as patents or copyrights. On the other hand, individuals frequently encounter amortisation in mortgages and various loan types. It is essential to delve into the advantages and disadvantages of amortisation to acquire a comprehensive understanding before making informed financial decisions.