This type of loan requires the borrower to make scheduled and periodic payments carried out to both the principal and interest. It pays off the interest expense for the period first and foremost. Meanwhile, any remaining amount is put toward reducing the principal amount.
Amortized loan
This type of loan requires the borrower to make scheduled and periodic payments carried out to both the principal and interest. It pays off the interest expense for the period first and foremost. Meanwhile, any remaining amount is put toward reducing the principal amount.
