P
Loans
Principal Amount
The actual amount you borrow — the bit that matters. Everything else (interest, fees) gets added on top. When you pay your loan, some goes to interest first, and the rest chips away at the principal.
Usage Examples
"Bongani borrowed R80,000 from Capitec. By the time he pays it all back with interest, he'll shell out R112,000 — but the principal he actually borrowed was just the R80,000."
"Nomsa looked at her FNB home loan statement and saw R8,500 a month going out. R3,200 went to interest, R5,300 to principal. After 240 months, that principal balance hits zero."
"Andile's Nedbank personal loan has a R50,000 principal, but because he makes extra payments above the minimum, his principal shrinks faster and he pays less interest overall. Just now the whole thing's sorted."