A scheduled loan payment is the regular, predetermined amount a borrower pays to a lender on a loan, usually monthly. This payment includes both principal—the original loan amount—and interest, the cost of borrowing. Following the schedule ensures you fully pay off the loan within the agreed timeframe, avoiding default or extra fees.
When you take out a loan like a mortgage, car loan, or personal loan, the lender provides an amortization schedule—a detailed plan outlining each payment’s amount and timing. Early payments primarily cover interest, while later payments increasingly reduce the principal balance. This structured approach ensures the loan is paid off evenly over time.
For example, on a $20,000 personal loan at 7% interest over five years, your monthly scheduled payment might be about $396. In the first payment, around $117 may go toward interest and $279 toward principal. By the last payment, almost all of the payment applies to principal. This process is known as amortization (read more on loan amortization).
Common loan types requiring scheduled payments include mortgages, auto loans, and personal installment loans. Missing payments can harm your credit score and result in fees or loan default. To avoid this, many borrowers set up automatic payments—though autopay is a method to pay, the scheduled payment is the amount and due date agreed upon. Some loans allow extra payments toward principal without penalties, reducing interest costs and loan duration; always confirm prepayment options with your lender.
If you need to adjust your payment date or face difficulty paying, contact your lender promptly to discuss options such as payment deferral or modification.
For more detailed information on managing loan payments and amortization, see our articles on loan amortization and repayment schedule options.
References:
— Consumer Financial Protection Bureau: What is a principal and interest payment on a mortgage?
— Investopedia: Amortization Schedule
— NerdWallet: What Is an Amortization Schedule?
