# Interest Payment

**IRI:** https://folio.openlegalstandard.org/R79QOmaGVle8iTbIH9lZWA7

## Labels

**Preferred Label:** Interest Income

**Alternative Labels:**

- Borrowing Cost Payment
- Debt Service Payment
- Interest Compensation
- Interest Distribution
- Loan Interest Payment

## Definition

An Interest Payment is a periodic payment made by a borrower to a lender as compensation for the use of borrowed funds. This payment is typically a percentage of the principal amount and is agreed upon at the time of the loan agreement, representing the cost of borrowing money.

## Sub Class Of

- https://folio.openlegalstandard.org/RCKOcs51IQGZ9MeUqtONIlc

**Deprecated:** False