Interest payments refer to the money that a borrower is required to pay to a lender as compensation for the use of the borrowed funds. This payment is typically calculated as a percentage of the principal amount loaned and is usually paid on a regular schedule, such as monthly or annually. The interest rate charged will depend on various factors including the borrower's creditworthiness, the term of the loan, and market conditions. Interest payments can have a significant impact on the total cost of borrowing and should be carefully considered when taking out a loan.