INTEREST BASED LOANS
Loans made to one or more individuals having most of the traditional charges for the loan as simply interest. The interest amount charged is a function of a rate of interest multiplied by the amount of time you have the money before it is paid back multiplied by the amount of money not yet paid back.
All loans are disclosed with the interest precomputed for the correct term and amount of the loan and are disclosed to you when reviewing the loan documents at closing. However, when you pay, for example, one hundred dollars, the interest due is calculated from the last time you paid interest and is deducted from the one hundred dollars leaving the remainder as payment toward your principal balance. Your balance, after payment, will always be shown as the principal remaining without showing any interest included.