French-style amortization with a fixed installment is a loan or mortgage repayment mode in which the borrower makes regular payments (monthly, bimonthly, quarterly, etc.) to repay capital and interest due.
This amortization system is thus characterized by constant installments: the sum of capital and interest remains the same for each installment.
Here is how it works:
Fixed installment: the main feature of French-style amortization is that the total installment amount is always the same throughout the life of the loan. This installment includes both a capital share and an interest share.
Installment composition:
Interest: at the beginning of the amortization plan, the interest share is higher because the outstanding debt (the capital still to be repaid) is greater.
Capital: gradually, as time passes and installment payments are made, the interest share decreases, while the repaid apital share increases.
In the case of investments with Walliance, for each investment offer that provides for this type of repayment, a detailed table specifying the proposed repayment schedule is included within the project page and offer documents. This table provides a clear indication of each installment, highlighting the expected share of principal and interest for each payment, thus enabling investors to have a transparent and accurate view of cash flows and repayment schedules.