The word “amortization” is usually used in finance & banking. “Amortization” appears when we talk about loans, EMIs, mortgages, and long-term payments. We hear this word very often when visiting banks, but still we don’t have proper knowledge about this word.
Today, we will be able to learn the amortization meaning, synonyms, antonyms, all 12 tenses, and quizzes at the end. I hope for the positive attitudes and best wishes for the learners.
Pronunciation
a·mor·ti·za·tion
/əˌmɔːr.tɪˈzeɪ.ʃən/
“uh-MOR-ti-ZAY-shun”
Words Form
| Type | Form | Simple Example |
|---|---|---|
| Verb | amortize | Banks amortize loans over many years. |
| Noun | amortization | The loan amortization period is 20 years. |
| Adjective | amortized | It is a fully amortized loan. |
| Adverb | – | – |
Verb Conjugation Table
| Form | Verb | Examples |
|---|---|---|
| Base Form V1 | amortize | We amortize the loan every month. |
| Past Tense V2 | amortized | They amortized the house loan in 15 years. |
| Past Participle V3 | amortized | The bank has amortized many loans this year. |
| -ing form | amortizing | They are amortizing the car loan now. |
| 3rd person singular | amortizes | The company amortizes its assets every year. |
Amortization Meaning in English
Amortization means the process of paying off the loan slowly by paying regular payments or installments. It reduces both the interest and the part of the main amount.
Amortization Meaning in Nepali
किस्ता-किस्तामा ऋण तिर्ने प्रक्रिया (हरेक महिना ब्याज र मूलधन दुवै घट्दै जान्छ)
Real-life examples of Amortization
We heard this word many times but were not able to understand its meaning. Thus, here are some real-life examples of amortization so we can fully understand it and use it in different situations.
| Situations | Simple Examples |
|---|---|
| Home Loan | My house loan has a 20-year amortization. |
| Educational Loan | The loan is amortized over 10 years after graduation. |
| Car Loan | The bank gave a 5-year amortization for the new car. |
| Business Loan | The company is amortizing its factory loan over 10 years. |
| Credit card | Some cards let you amortize big purchases in 12 months. |
How to use the word “Amortization” in Real Paragraph
Last year, my friend Bikesh took out a home loan from a bank. He pays the same amount of money as an EMI every month. After a while, he noticed something interesting: in the beginning, most of the payment went toward interest, but slowly over some time, a larger portion started reducing the loan amount itself.
He asked the bank, and the bank explained that this system is called amortization. It allows borrowers to repay the loan in manageable installments instead of paying the whole amount of the loan at once. By the end of the loan term, the entire loan amount will be clear. By this process anyone can afford the long-term loans.
Synonyms of Amortization
- Repayment
- Installment Payment
- Cost Distribution
- Debt Reduction
Antonyms of Amortization
- Full Payment
- Immediate payment
- One-Time Settlement
Amortization in All 12 Tenses
| Tenses | Structure | Simple Sentence |
|---|---|---|
| Present Simple | Subject + amortize/amortizes | The bank amortized home loans over 20 years. |
| Present Continuous | Subject + am/is/are + amortizing | They are amortizing the car loan right now. |
| Present Perfect | Subject + have/has + amortized | She has amortized half of her education loan. |
| Present Perfect Continuous | Subject + have/has been + amortizing | The company has been amortizing its debt for five years. |
| Past Simple | Subject + amortized | They amortized the old loan in 10 years. |
| Past Continuous | Subject + was/were + amortizing | While interest rates were low, people were amortizing fast. |
| Past Perfect | Subject + had + amortized | By 2023 they had already amortized the full amount. |
| Past Perfect Continuous | Subject + had been + amortizing | The family had been amortizing the house loan for eight years. |
| Future Simple | Subject + will + amortize | Next year the bank will amortize new education loans. |
| Future Continuous | Subject + will be + amortizing | In 2030 most loans will be amortizing automatically online. |
| Future Perfect | Subject + will have + amortized | By 2040 he will have amortized three different loans. |
| Future Perfect Continuous | Subject + will have been + amortizing | In fifteen years they will have been amortizing nonstop. |
Useful Collocations
Questions/Quiz
Q. The bank …………. home loans over 20 years.
a. amortizes b. amortized c. pay
Q. They ………. the car loan now.
a. are amortizing b. amortizes c. amortizing
Q. She …………. half of her loan.
a. has amortized b. amortizes c. are amortizing
Q. The company …………. its debt for five years.
a. has been amortizing b. has amortize c. are amortizing
Q. They ……………… the old loan in 10 years.
a. are amortizing b. amortizes c. amortized
Quick Tips
Never say “do amortization”; just say “amortize the loan” or “follow the amortization schedule.”
Interview line: I prepared the amortization table for a $50000 project.
Conclusion
Amortization is the essential word in the financial sector that helps individuals and businesses manage their large expenses over time by taking long-term loans. By understanding these words, you can make your financial decisions smartly and have a better understanding of loan agreements.