{"id":12095,"date":"2026-08-14T17:57:13","date_gmt":"2026-08-14T12:27:13","guid":{"rendered":"https:\/\/www.fatakpay.com\/blog\/?p=12095"},"modified":"2026-08-14T17:57:14","modified_gmt":"2026-08-14T12:27:14","slug":"interest-only-loan","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/","title":{"rendered":"How Does an\u00a0Interest-Only\u00a0Loan Work?\u00a0\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A standard credit product may be complex to understand, but an&nbsp;<strong>interest-only loan<\/strong>&nbsp;presents a different kind of financial approach altogether. Unlike any other credit product where each payment made reduces the amount owed along with the total interest earned, an i<strong>nterest-only loan&nbsp;<\/strong>temporarily reduces your monthly burden. Here is a detailed discussion of the workings of this type of loan.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#What_is_an_Interest-Only_Loan\" >What is an Interest-Only Loan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#How_Does_an_Interest-Only_Loan_Work\" >How Does an&nbsp;Interest-Only&nbsp;Loan Work?&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Option_A_Deferred_Principal\" >Option&nbsp;A: Deferred Principal&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Option_B_Upfront_Interest_Bullet_Payment\" >Option&nbsp;B: Upfront Interest \/ Bullet Payment&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Advantages_of_an_Interest-Only_Loan\" >Advantages of an Interest-Only Loan&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Risks_and_Drawbacks\" >Risks and Drawbacks&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Interest-Only_Loans_in_India_What_to_Know\" >Interest-Only Loans in India: What to Know&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Conclusion\" >Conclusion&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#FAQs\" >FAQs&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Is_an_interest-only_loan_cheaper_than_a_regular_EMI_loan\" >Is an interest-only loan cheaper than a regular EMI loan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Can_I_switch_from_interest-only_to_regular_EMI_anytime\" >Can I switch from interest-only to regular EMI anytime?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Do_personal_loans_in_India_offer_an_interest-only_option\" >Do personal loans in India offer an interest-only&nbsp;option?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#What_happens_to_the_principal_if_I_only_pay_interest\" >What happens to the principal if I only pay interest?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Is_an_interest-only_loan_riskier_than_a_standard_loan\" >Is an interest-only loan riskier than a standard loan?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/#Can_I_prepay_the_principal_early_on_an_interest-only_loan\" >Can I prepay the principal early on an interest-only loan?&nbsp;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_Interest-Only_Loan\"><\/span><strong>What is an Interest-Only Loan?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For those of you who want to know,\u00a0what is an interest-only loan;\u00a0it is\u00a0basically a\u00a0loan arrangement where the\u00a0person\u00a0borrowing makes payments only towards the interest\u00a0accrued\u00a0during a certain period.\u00a0In this particular period, none of your payments will reduce the total principal borrowed from you.\u00a0In other words, an<strong>\u00a0Interest-only loan\u00a0<\/strong>is quite simple; all you need to know is that it puts the payment of the total principal until another date.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_an_Interest-Only_Loan_Work\"><\/span><strong>How Does an&nbsp;Interest-Only&nbsp;Loan Work?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To understand\u00a0how interest-only loan works,\u00a0one should consider the following two types of structural frameworks that financial institutions provide:\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Option_A_Deferred_Principal\"><\/span><strong>Option&nbsp;A: Deferred Principal<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Under this\u00a0option, you make\u00a0Interest-only loan\u00a0payment<strong>\u00a0<\/strong>on installments for an agreed term (such as 3 to 5 years), after which the framework of loan changes to include\u00a0<a href=\"https:\/\/www.fatakpay.com\/blog\/personal-loan\/what-is-emi\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>EMI<\/strong><\/a><strong>\u00a0<\/strong>(Equated Monthly Installment) which pays off both interest and principal.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Option_B_Upfront_Interest_Bullet_Payment\"><\/span><strong>Option&nbsp;B: Upfront Interest \/ Bullet Payment<\/strong>&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In this case, you pay the entire amount of interest in installments or upfront, but leave the principal&nbsp;portion&nbsp;as such, to be repaid later.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_an_Interest-Only_Loan\"><\/span><strong>Advantages of an Interest-Only Loan<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A few\u00a0advantages of interest-only loan\u00a0structure are:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Initial Outflow Reduction<\/strong>:\u00a0With an\u00a0<strong><a href=\"https:\/\/www.fatakpay.com\/instant-loans-online\">instant loan<\/a>,<\/strong>\u00a0you can enjoy significantly lower monthly payments at the beginning of your repayment tenure.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Future Inflows:<\/strong>\u00a0If you\u00a0anticipate\u00a0getting some cash inflows in the future, whether in the form of\u00a0a bonus,\u00a0investment\u00a0returns,\u00a0or any other source, this will be highly beneficial.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Resource Utilization<\/strong>: The business or investor can use the cash flow generated to invest in profitable ventures.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks_and_Drawbacks\"><\/span><strong>Risks and Drawbacks<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the&nbsp;initial&nbsp;low payments that seem appealing, there are certain the risks associated with this kind of loan, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Cost of Borrowing:<\/strong>\u00a0An\u00a0<strong>interest-only loan\u00a0<\/strong>usually has a\u00a0little\u00a0higher interest rate than a traditional amortized loan.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Amount to be Paid Back<\/strong>: The partial or delayed repayment of the principal leads to higher costs of borrowing since interest will keep\u00a0accruing\u00a0on the outstanding balance.\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Payment Shock:<\/strong>\u00a0There is a marked increase in the payment amount when interest-only periods come to an end.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest-Only_Loans_in_India_What_to_Know\"><\/span><strong>Interest-Only Loans in India: What to Know<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In the context of Indian financial sector,<strong>&nbsp;interest-only loan<\/strong>&nbsp;products exist either in real estate project finance, pre-EMI home loans, or in select corporate credit facilities. If you want a normal<strong>&nbsp;<\/strong><a href=\"https:\/\/www.fatakpay.com\/personal-loan\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>personal loan<\/strong><\/a>&nbsp;facility, then Indian banks and NBFCs&nbsp;generally have&nbsp;amortizing EMI requirements even for the very first installment.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The\u00a0interest-only loan\u00a0is an effective mechanism to use when planning to repay the loan in future due to your repayment strategy. Nevertheless, since accumulated interest will increase over time, it is important to investigate your stability in the future to decide on the choice of such loan structure.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are looking for either liquidity or a credit line that will help you with your monthly bills, then&nbsp;FatakPay&nbsp;is just what you need because we offer fast, convenient, and simple services for every Indian.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs&nbsp;<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_an_interest-only_loan_cheaper_than_a_regular_EMI_loan\"><\/span><strong>Is an interest-only loan cheaper than a regular EMI loan?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. Although the&nbsp;initial&nbsp;monthly payments are lower, the overall interest paid during the term of the&nbsp;<strong>Interest-only loan<\/strong>&nbsp;is higher as the principal does not reduce during the&nbsp;initial&nbsp;period.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_I_switch_from_interest-only_to_regular_EMI_anytime\"><\/span><strong>Can I switch from interest-only to regular EMI anytime?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This may vary depending on the lending institution. While some allow for early conversion and principal repayments without too many sanctions, others will have rigid interest-only schemes.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_personal_loans_in_India_offer_an_interest-only_option\"><\/span><strong>Do personal loans in India offer an interest-only&nbsp;option?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. Personal loans in India mostly use regular EMI schemes since day one, except for overdrafts that work on similar terms by collecting interest on borrowed amounts only.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_happens_to_the_principal_if_I_only_pay_interest\"><\/span><strong>What happens to the principal if I only pay interest?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The principal is not affected in any manner. The amount that was originally loaned is still owed by you either in a single installment or increased EMIs in the coming months.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_an_interest-only_loan_riskier_than_a_standard_loan\"><\/span><strong>Is an interest-only loan riskier than a standard loan?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. If your future earnings or lump sum do not materialize, switching to principal repayment will cause a lot of financial trouble.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_I_prepay_the_principal_early_on_an_interest-only_loan\"><\/span><strong>Can I prepay the principal early on an interest-only loan?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, most lenders allow you to prepay your principal in the interest-only phase.&nbsp;<\/p>\n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\/\", \n\n  \"@type\": \"BreadcrumbList\", \n\n  \"itemListElement\": [{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 1, \n\n    \"name\": \"Home\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 2, \n\n    \"name\": \"Blog\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 3, \n\n    \"name\": \"Personal Loan\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/\" \n\n  },{ \n\n    \"@type\": \"ListItem\", \n\n    \"position\": 4, \n\n    \"name\": \"How Does an Interest-Only Loan Work?\", \n\n    \"item\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/\" \n\n  }] \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"BlogPosting\", \n\n  \"mainEntityOfPage\": { \n\n    \"@type\": \"WebPage\", \n\n    \"@id\": \"https:\/\/www.fatakpay.com\/blog\/personal-loan\/interest-only-loan\/\" \n\n  }, \n\n  \"headline\": \"How Does an Interest-Only Loan Work? Meaning & Types\", \n\n  \"description\": \"Learn what an interest-only loan is, how it works, and its key benefits and risks. Understand the repayment structures before you choose this loan type.\", \n\n  \"image\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\", \n\n  \"author\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"url\": \"https:\/\/www.fatakpay.com\" \n\n  }, \n\n  \"publisher\": { \n\n    \"@type\": \"Organization\", \n\n    \"name\": \"FatakPay\", \n\n    \"logo\": { \n\n      \"@type\": \"ImageObject\", \n\n      \"url\": \"https:\/\/www.fatakpay.com\/navbar-assest\/Logo-2.png\" \n\n    } \n\n  }, \n\n  \"datePublished\": \"2026-08-14\", \n\n  \"dateModified\": \"2026-08-14\" \n\n} \n\n<\/script> \n\n\n\n<script type=\"application\/ld+json\"> \n\n{ \n\n  \"@context\": \"https:\/\/schema.org\", \n\n  \"@type\": \"FAQPage\", \n\n  \"mainEntity\": [{ \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Is an interest-only loan cheaper than a regular EMI loan?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"No. Although the initial monthly payments are lower, the overall interest paid during the term of the Interest-only loan is higher as the principal does not reduce during the initial period.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Can I switch from interest-only to regular EMI anytime?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"This may vary depending on the lending institution. While some allow for early conversion and principal repayments without too many sanctions, others will have rigid interest-only schemes.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Do personal loans in India offer an interest-only option?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"No. Personal loans in India mostly use regular EMI schemes since day one, except for overdrafts that work on similar terms by collecting interest on borrowed amounts only.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"What happens to the principal if I only pay interest?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"The principal is not affected in any manner. 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If your future earnings or lump sum do not materialize, switching to principal repayment will cause a lot of financial trouble.\" \n\n    } \n\n  }, \n\n  { \n\n    \"@type\": \"Question\", \n\n    \"name\": \"Can I prepay the principal early on an interest-only loan?\", \n\n    \"acceptedAnswer\": { \n\n      \"@type\": \"Answer\", \n\n      \"text\": \"Yes, most lenders allow you to prepay your principal in the interest-only phase.\" \n\n    } \n\n  }] \n\n} \n\n<\/script> \n","protected":false},"excerpt":{"rendered":"<p>A standard credit product may be complex to understand, but an&nbsp;interest-only loan&nbsp;presents a different kind of financial approach altogether. Unlike any other credit product where each payment made reduces the amount owed along with the total interest earned, an interest-only loan&nbsp;temporarily reduces your monthly burden. Here is a detailed discussion of the workings of this<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-12095","post","type-post","status-publish","format-standard","category-personal-loan"],"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=12095"}],"version-history":[{"count":1,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12095\/revisions"}],"predecessor-version":[{"id":12096,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/12095\/revisions\/12096"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=12095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=12095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=12095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}