Successive Repayment Structures

Successive repayment structures refer to loan agreements where the borrower makes regular payments over time, gradually decreasing the loan balance. Each payment typically comprises both interest (the cost of borrowing) and principal (the original loan amount). As payments progress, the portion allocated to interest decreases while the principal repayment increases. This structure provides a clear, predictable schedule, helping borrowers manage finances and plan for full repayment by the end of the loan term. It's commonly used in mortgages, personal loans, and many financing arrangements, ensuring consistent reduction of debt through systematic, scheduled payments.