MANAGEMENT

Detailed explanation-1: -Interest-Only Payment Loan: A non-amortizing loan in which the lender receives interest during the term of the loan and principal is repaid in a lump sum at maturity.

Detailed explanation-2: -An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the loan’s principal amount and the interest accrued.

Detailed explanation-3: -⇒ All repayments of interest-bearing debts by a series of payments, usually in size, made at equal intervals of time is called an amortization. Mortgages and many consumer loans are repaid by this method. ⇒ An amortized loan is a loan with scheduled periodic payments that consist of both principal and interest.

Detailed explanation-4: -Fully amortized loans have schedules such that the amount of your payment that goes toward principal and interest changes over time so that your balance is fully paid off by the end of the loan term.

Detailed explanation-5: -There are three main classification found in Term Loans: short-term term loan, intermediate term loan, and long-term term loan.