Annuity Loan

Annuity loan means that you pay the same instalment amount, principal and interest until the loan has been fully repaid (provided that the interest rate remains unchanged). As the loan is repaid, the principal payments constitute a larger share of the total amount.

The debt service per day (interest and loan repayment amount per day) for an annuity loan is the same as for a (finance) lease or for a ship on bareboat hire.

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