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Frequently Asked QuestionsWhat is a lump-sum payment?In a lump-sum payment, the borrower repays the lender with a single one-time payment at the end of the loan term.What is a specific payment amount?Under a specified payment plan, the borrower will pay the lender a specific amount of money at regular intervals.
If any outstanding balance remains at the end of the term, it will be paid then. What is a principal & interest payment?Under a principal + interest payment plan, the borrower will make regular payments that count towards both the principal amount and the interest as it is compounded.
At the end of the term, there will be no outstanding balance. For this reason, you can only choose a principal + interest payment plan when the loan agreement has a fixed term length.What is an interest only payment?Under an interest only payment plan, the borrower will make regular payments that only count towards the accumulated interest. No portion of the payment will go towards the original principal amount.
At the end of the term, the borrower will repay the principal amount along with any unpaid interest.