Principal amount

(redirected from Principal Sums)

Principal amount

The face amount of debt; the amount borrowed or lent. Often called principal.

Principal Amount

The amount of money one borrows. Unless the loan is interest-free, one always pays more than the principal amount to the lender. The interest is calculated over the principal amount still outstanding. As a result, many loans are amortized so that a greater amount of principal amount remains outstanding for a longer period of time so the lender can make the most profit from the loan. It is also simply called the principal.
References in periodicals archive ?
In shutting down Pine Commodities and sister firm Pinecom Services in the High Court, Registrar Derrett said the evidence "strongly suggests that the investors will never recover the principal sums invested, let alone realise any return".
Anticipated peak of payments on foreign debt accounts for 2018-2025, Kyrgyzstan will start to pay off principal sums with accrued interest on loans.
Over the past 40 years, the government has been loaned $115bn and has repaid $132bn in principal sums and interest.
The Deputy Finance Minister said the principal sums of the external debt are repaid now.
Our overriding objective is to protect the principal sums invested even if this means we may not be achieving the maximum return offered by some investment institutions.

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