What are the ways of repaying a loan? │ Bondster

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What are the ways of repaying a loan?

What are the ways of repaying a loan?

April 29, 2022

The annuity repayment has a fixed monthly payment. In this kind of repayment, the amount of principal repaid in each payment gradually increases while the amount of interest paid decreases. 2) Linear repayment involves repaying the same amount of principal with each payment over the entire investment period. The amount of interest paid with each payment decreases continuously. 3) One-time repayment. During the maturity of the loan, only interest payments are made. At the end of the loan maturity, the principal is repaid in a lump sum. The amount of interest paid with each repayment stays the same for the duration of the loan.


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