What is a Deferred Payment Loan?
A Deferred Payment Loan is a type of loan where the borrower is required to make a single lump sum payment at the end of the loan term instead of making regular installment payments.
This type of loan is often used for short-term financing or in cases where the borrower expects to receive a large sum of money in the future, such as from an investment or business venture.
Why Choose a Deferred Payment Loan?
Deferred Payment Loans offer several advantages, including:
- Flexibility in repayment
- Potentially lower interest rates
- Short-term financing solutions
It's important to carefully consider your financial situation and objectives before choosing this type of loan. Assess your ability to make the lump sum payment at maturity.
Key Features
- Single lump sum payment at maturity
- May have lower interest rates compared to other loans
- Suitable for short-term financing
Calculate Your Deferred Payment Loan
Use our loan calculator to estimate the total amount due at maturity and the total interest you'll pay for a deferred payment loan based on your loan amount, term, interest rate, and compounding frequency.