# simple interest loan

The couple got a simple interest loan for their 30-year mortgage.

The definition of a simple interest loan is a loan that calculates interest only on the principal (the amount borrowed) and not on the interest owed.

An example of simple interest loan is a mortgage with a 5% interest rate that is divided into 365, which is .0137% daily.

YourDictionary definition and usage example. Copyright © 2018 by LoveToKnow Corp

Link to this page

Cite this page

**MLA Style**

"simple interest loan." YourDictionary, n.d. Web. 18 August 2018. <http://www.yourdictionary.com/simple-interest-loan>.

**APA Style**

simple interest loan. (n.d.). Retrieved August 18th, 2018, from http://www.yourdictionary.com/simple-interest-loan