Repayment refers to the process of returning borrowed funds through a structured schedule outlined in a loan agreement. Payments usually consist of both the loan principal and interest, occurring monthly or according to an agreed plan. Timely repayment helps maintain a positive credit score, while missed or late payments can lead to penalties and damage to credit ratings. Repayment plans can be flexible or fixed, depending on the loan type. For many, understanding and adhering to repayment terms are key to avoiding financial difficulties and maintaining creditworthiness.