Definition
A biweekly payment is a payment made every two weeks rather than once a month, dividing a loan balance into smaller, more frequent amounts.
A biweekly payment schedule collects a payment once every two weeks, which results in 26 payments over a calendar year. Compared with monthly billing, biweekly payments are smaller and arrive more often, and on some loans a true biweekly schedule results in the equivalent of one extra monthly payment per year, which can shorten the term and reduce total interest. A biweekly schedule has its own set of due dates defined by the loan agreement and is independent of any particular customer's pay cycle. It is one of several payment frequencies a loan can use, alongside weekly, semimonthly, and monthly.
