Most consumer loans involve add-on interest.

Name: Most consumer loans involve add-on interest.
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Add-on interest is a type of interest calculation where the interest is added to the principal amount of the loan upfront, and the borrower pays back the loan plus interest in equal installments over the loan term. This type of interest is commonly used in consumer loans such as personal loans, auto loans, and some credit cards.

Most Consumer Loans Involve Add-On Interest