An amortized loan is generally structured to provide constant payments each of which contains the same proportions of interest and principal repayment.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, where initially more interest is paid than principal.

Constant Payments

A fixed amount of money paid periodically in a loan agreement or financial investment, such as in an annuity or mortgage.

Interest

A fee levied for the use of borrowed money, frequently expressed in terms of an annual percentage rate.