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EMI/Amortized Payment Loan

Amortized Payment Loan is a type of loan in which equal regular payments are made throughout the loan period. After each regular payment, the next interest rate is calculated on the remaining principal amount. At the end of the term of the loan, the loan is completely paid off.

This type of loan is also known as EMI loan. It is one of the most popular loan offered by banks and financial institutions. Amortized Payment Loans provide a predictable repayment structure and it becomes easier for both money lender and money borrower to manage their finances.

This payment is applicable for all types of loans like home loans, car loans, personal loanswhich are paid in installments.

Deferred Payment Loan

Deferred Payment Loan is a type of loan where the borrower can pay the loan after it reaches maturity. During the deferral period, no amount of money has to be paid. This type of loan normally follows the compound interest rate but there is no regular payment of interest before maturity.

At the end of the loan term, the borrower needs to pay all the amount of money including the interest amount and the principal amount to the lender. Loans such as student loans, some mortgages, personal loans may follow the deferred payment method.

Interest-Only Loan

Interest-Only Loan is a type of loan where the borrower pays only the interest for a specified period, typically the first few years of the loan. During this period, the principal balance remains unchanged. After the interest-only period ends, the borrower must pay both principal and interest, or pay the entire principal amount in a lump sum.