Tranche: what is it?
Consider the concept of the word "tranche" - what it is and where it applies. From French, it translates as "piece" or "share." In fact, it is a partial payment of a large amount of money. Banking institutions often provide the "Tranche granting" service, what does this mean? After signing the contract, the bank issues the amount in small parts. Typically, the size of the tranche does not exceed 25% of the total amount. Tranche is intensively practiced in international lending.
What is a loan tranche? The loan amount is provided to the user in part. Interest is accrued only for issued money. If the borrower no longer needs a loan, he is not obliged to pay interest for the total amount of the loan.
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