Payback period

(redirected from Loan Period)
Also found in: Financial.

payback period

[′pā‚bak ‚pir·ē·əd]
(industrial engineering)
The amount of time required for achieving an amount in profits to offset the cost of a capital expenditure, such as the cost of investment in modifications in an industrial facility for the purpose of conserving energy.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.

Payback period

A popular nondiscounting project selection technique used when organizations require the capital investment of a project to be recovered within a specified period; the period it takes for the stream of net cash flows to equal the initial investment. Also, a term used in the evaluation of sustainable and renewable energy options, wherein greenhouse or greenhouse intensive energy savings that the technology may enable over its useful life are assessed in relation to the embodied energy required for its manufacture. For renewable energy systems, it can also refer to the period of time over which energy cost savings derived from accessing renewable energy offset the upfront capital costs of the system.
Illustrated Dictionary of Architecture Copyright © 2012, 2002, 1998 by The McGraw-Hill Companies, Inc. All rights reserved
References in periodicals archive ?
Reportedly, the loan period is three years and the annual interest of the loans is 8%.
Refinancing can be a tool to shorten the loan period or reduce the monthly instalments Image Credit: Shutterstock
That is an additional Rs1,000 every month or Rs60,000 over the full loan period.
Loftus-Cheek (above), loaned by Chelsea to Crystal Palace last season, is expected to be available for another loan period, despite support within Stamford Bridge for the 22-year-old to be given his chance there.
While the team refused to renew the Egyptian's loan period, who didn't participate a lot in the matches of the current season, despite the team's head coach Saad Al-Shehri's praises of el-Sheikh's commitment in the trainings.
The Reds turned down a loan request from the Spanish club, insisting that they would only consider an offer for their England striker if it contained an option for a permanent deal at the end of any loan period.
Also, the loan period is seven years, the first three years of which are amortisation-free.
"I thoroughly enjoyed my loan period last season and I'm looking forward to working hard to get into contention for selection and improving on last year's stats."
EVERTON youngster David Henen's loan period at Fleetwood Town has been extended until the end of the season.
The contract allows an extension in the loan period for another season without obtaining the approval of the British team, if Salah does not object.
Under the tripartite loan agreement between borrower, bank and PCH, the borrower will then be responsible for paying down the principal of the loan to the issuing bank, and must do so during the first half of the agreed total loan period (up to 30 years).