Amortization

Straight amortization

In the case of straight amortization, the amortization occurs continuously over the life of the loan and the amortization itself is constant. As the debt decreases over time, interest costs will also decrease, causing the amount of each repayment to decrease over the life of the loan.företagslån minskar under lånets löptid.

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Annuity

Annuity loans have ongoing repayments they with, but in the case of annuity, the amount of each repayment is constant throughout the life of the loan. Unlike direct amortization, the interest rate is higher at the beginning of the loan and then decreases over time while the amortization itself increases.

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Amortization free

Unlike with straight amortization and annuity, you do not amortize on an amortization-free loan on an ongoing basis, but you only pay interest over the life of the loan. The loan is then paid back in full at the end of the term. If you wish, you can make repayments on an amortization-free loan during its term to reduce debt and thus lower interest costs.

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What types of amortization does Froda offer?

Thriving business loans is an annuity loan with continuous amortization for up to 60 months. You therefore pay a fixed amount that is constant for each repayment during the loan's amortization period and you can repay all or part of the loan at any time completely free of charge. If you want to adjust the size of the payments, you can easily do so by making an additional deposit or by adjusting the term of your business loan. You can also pause the amortization for up to 6 months, as often as you like.pausa amorteringen i upp till 6 månader, så ofta du vill.

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