Also referred to as interest only loan, it is an arrangement on a loan which requires the borrower to pay periodic installments to cover only the interest amount. The principal amount is paid all at once at the end of the loan period.
Link to This DefinitionDid you find this definition of NON-AMORTIZED LOAN helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary