Business, Legal & Accounting Glossary
Interest added to the principal of a loan regardless of repayment of principal. The borrower pays interest on the full principal balance for the entire loan period, not on the declining balance, even though the principal balance is reduced each month as payments are made. Add-on interest is sometimes referred to as “block interest.”
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This glossary post was last updated: 19th November, 2021 | 0 Views.