What is the meaning of add-on interest?

add-on interest is a procedure in which the interest payable during the term of the loan is added to the principal of the loan. The borrower signs a note promising to repay principal plus interest, although only the principal is initially disbursed to the borrower.

4
 
|15 years ago|603 views|share |citing 
APABarry Goldsmith. (2010). add-on interest. Retrieved September 22, 2026, from http://smartdefine.org/add-on_interest/definitions/1147190
ChicagoBarry Goldsmith. 2010. "add-on interest" http://smartdefine.org/add-on_interest/definitions/1147190 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, add-on interest, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/add-on_interest/definitions/1147190>.
MLABarry Goldsmith. "add-on interest" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/add-on_interest/definitions/1147190>