What Is an Interest Only Loan?

Answer

An interest-only loan is a loan in which, for a set term, the borrower pays only the interest on the principal balance, with the principal balance unchanged. They are popular ways of borrowing money to buy an asset that is unlikely to depreciate much and which can be sold at the end of the loan to repay the capital.
1 Additional Answer
Interest only loan is a loan whereby the borrower is required to pay interest on the principal of the loan, the principal balance remains unchanged. In UK this type of interest only loan has been widely used to borrow money to be used in the purchase of properties which depreciates and can be sold to repay the capital.
Q&A Related to "What Is an Interest Only Loan"
Interest only loans, usually mortgages, are loans where you pay only the interest for a predetermined amount of time. During this period, none of the payments you make go towards
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Explore this Topic
Interest only loans, usually mortgages, are loans where you pay only the interest for a predetermined amount of time. During this period, none of the payments ...
Interest only loans, usually mortgages, are loans where you pay only the interest for a predetermined amount of time. During this period, none of the payments ...
Interest only loans, usually mortgages, are loans where you pay only the interest for a predetermined amount of time. During this period, none of the payments ...
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