Interest Only Loan Calculator is an online personal finance assessment tool to calculate how much monthly interest should be paid on every month instead of paying both part of both interest and principal every month. The principal amount, annual interest rate and the maturity period are the key terms to determine the best option available in the finance market.
In traditional loan requires the borrower to make repayment of part of the Principal as borrowed and the Interest on that money for each month. The principal you owe on your loan decreases over the term of the loan. In contrast, Interest only Loans are quite popular. An Interest Only Loan is a loan for which the borrower pays only the interest on the capital for a specified number of years, there is no amount that goes to pay off the principal. The Principal remains same. At the end of the loan term, the borrower has the options of renewing the interest only loan, repaying the capital, or converting the loan in to a regular principal and interest payment loan according to the terms between you and Money lending services. When it comes to online calculation, this interest only loan calculator assist you calculate the future payments of the desired loan amount.