add on loan

A loan in which the interest is calculated at the stated rate for the loan agreement’s full term for the full principal amount, and then the interest is added to the principal before installment payments are calculated, resulting in an interest amount higher than if it were calculated on the monthly unpaid balance.

• Consumer loans are typically add-on loans.

— Also termed contract loan. See add-on interest under INTEREST(3).

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词条贡献者

译员何巍，毕业于欧洲一流的高级翻译学院，专注翻译各种与生命科学有关的法律文件。