Both the loan we obtained from the bank and the loan contract of the bank stipulate the repayment method. Under normal circumstances, it will be divided into three types: 1, interest settlement on schedule, and repayment of principal when due. 2. Repay the principal on schedule, and the profit will be paid off with the principal. 3. Repay the principal and interest in equal amount on schedule.

1. Interest shall be settled on schedule, and the principal shall be repaid when due. It pays interest on a monthly or quarterly basis, and repays the principal at maturity.

2. Repay the principal on schedule, and the profit will be paid off with the principal. Is to pay off the principal and interest in one lump sum when the loan expires.

3. Repay the principal and interest in equal amount on schedule. In fact, like mortgage loans, the calculated principal and interest are repaid every month and paid off at maturity.

What you said belongs to the first kind. Only the loan interest is repaid monthly or quarterly, and the principal can be repaid in one lump sum after maturity.