Contract Loan Law and Legal Definition
A contract loan is also known an add-on-loan. This refers to a loan in which the interest is calculated at the stated rate for the loan agreement's full term for the full principal amount. Then the interest is added to the principal before installment payments are calculated. It further results in a higher amount of interest if it were to be calculated on the monthly unpaid balance. Consumer loans are typically add-on loans.
Legal Definition list
Related Legal Terms
- 30-Year Contract [Agriculture]
- Accessory Contract
- Accrual of a Contract Claim
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Action Ex Contractu
- Adhesion Contract
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
