lainaerä

Lainaerä is the regular payment made to service a loan, typically occurring monthly. It represents the amount a borrower must pay according to the loan agreement to keep the loan in good standing and reduce the debt over time. The size of the lainaerä depends on the loan amount, the interest rate, the term of the loan, and the chosen amortization method.

A lainaerä comprises two main components: interest and amortization (lyhennys) of the loan principal. The interest portion reflects the cost of borrowing for the period, while the amortization portion reduces the outstanding balance. Some loan agreements may include additional charges, but in standard cases the lainaerä covers principal and interest and is itemized on statements or an amortization schedule (lainaeräerittely).

The size and composition of a lainaerä are influenced by the loan’s amortization method. In an annuity loan, the erä is fixed and paid each period, with a decreasing interest portion and an increasing principal portion over time. In a straight-line or declining balance loan, the principal repayment is more constant, causing the total erä to decline as interest payments diminish. Some loans may combine features or include special terms such as payment holidays or grace periods.

For borrowers, the amortization schedule or lainaeräerittely provides a detailed view of upcoming payments, including dates, principal, interest, and the remaining balance. This helps with budgeting, planning, and evaluating options such as refinancing.