debt service(redirected from Service a Loan)
Also found in: Encyclopedia.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.