Loan Payment Type

EMI (standard) Payment Type

Loans with a standard payment type require regular fractional payments of the combined principal and accrued interest where fractions are evenly divided amongst the payment cycle duration. In this way, the principal and interest are fully repaid after the final payment cycle and repayment occurs linearly over time.

Bullet Loan Payment Type

Loans with a bullet-loan payment type only require regular payments of the accrued interest until the final payment cycle at which period repayment is required of the full principal debt remaining.