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The divisional structure encourages decentralization.
Interest-Only Loan
A type of loan where the borrower is required to pay only the interest on the principal balance for a set period, with the principal balance unchanged.
Principle Amount
The principal amount is the initial size of a loan or an investment, not including profits or interest.
Loan Payment
A payment made by a borrower to a lender that may include both the principal and interest.
Effective Annual Rate
The interest rate on a loan or financial product restated from the nominal rate as an annual rate, including any compounding that occurs during the year.
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