straight loan

Definition

A loan in which only interest is paid during the term of the loan with the entire principal amount due with the final interest payment. Also called a term loan.

Use straight loan in a sentence

You need to try and make sure that you will be able to pay it off before you take on any straight loan.

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The straight loan was preferred by the borrower who wanted small payments, as well as the ability to pay the interest down first.

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While they liked the benefits of having a straight loan, they also needed to prepare for that final payment when the entire principal was due.

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