Current loan balance is the amount of money that is still owing on a
loan. It is calculated by subtracting the total amount of payments that have been made from the original loan amount.
The current loan balance is important because it determines how much
interest will be charged on the loan. The higher the current loan balance, the higher the interest rate will be.
In the context of
securitisations, the current loan balance is important because it determines the amount of money that will be available to investors. The higher the current loan balance, the more money will be available to investors.