In an interest-only loan,the principle reduces by a small amount at first,and more rapidly towards the end of the loan.

Name: In an interest-only loan,the principle reduces by a small amount at first,and more rapidly towards the end of the loan.
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In an interest-only loan, the principle does not reduce at all during the loan term. Only the interest is paid, and the borrower is responsible for repaying the entire principal at the end of the loan term.

In an Interest-Only Loan,the Principle Reduces by a Small Amount