A bullet loan is a type of loan where the borrower makes payments only on the interest for a set period of time. At the end of the loan term, the borrower pays off the entire principal of the loan in one lump sum. Bullet loans are typically used for short-term financing needs, such as funding a business expansion. How are bullet payments calculated? Bullet payments are calculated as the sum of all remaining payments on a loan, including interest and principle. What is the term of a loan called? The term of a loan is the amount of time that a borrower has to repay the loan. The term can be anywhere from a few months to several years, depending on the type of loan.
What is a 360 180 loan?
A 360/180 loan is a type of loan in which the borrower has 360 days to repay the loan in full, and 180 of those days must be consecutive. This type of loan is typically used for short-term financing needs, such as bridge loans or other types of loans that are needed for a limited time period. What does bullet at maturity mean? Bullet at maturity means that the entire loan balance is due and payable in full at the maturity date. This is in contrast to a loan with periodic payments, where the balance is paid down over time. Which of the following is a bullet bond? A bullet bond is a type of bond that is repaid in a single lump sum at the end of the bond's term.