The types of loans supported

Invvest allows you to track and manage the 4 most common types of loans.

Amortizing Loan

This is the most common type. An amortizing loan is a type of loan where the borrowed amount (the principal) is gradually repaid over a specified period, in multiple installments (monthly, quarterly, etc.).

Each installment generally includes two components:

1. A portion of the principal : A part of the borrowed amount that is repaid.

2. Interest (and insurance): Calculated on the remaining principal.

The monthly payment is fixed throughout the loan term. As repayments are made, the interest portion decreases (since the remaining principal decreases) while the principal portion increases. By the end of the loan term, the principal is fully repaid.

Bullet Loan

A bullet loan is a type of loan where the borrower repays the borrowed principal in a single payment at the end of the loan term.

During the loan period, the borrower only pays the interest, calculated on the total borrowed amount.

Partial Deferral Loan

A partial deferral loan is a type of loan that offers an initial period during which the borrower only repays the interest, without repaying the principal. At the end of this period, they begin repaying both the principal and the interest according to a standard plan (usually amortizing).

• Partial deferral period :

  • The borrower pays only the interest on the total borrowed amount.

  • No principal repayment is made during this period.

• Amortization period :

  • After the deferral period, standard repayment begins: each installment includes a portion of the principal and a portion of the interest.

Loan with Full Deferral

A loan with full deferral is a type of loan where the borrower does not repay either the principal or the interest during a specified period at the beginning of the loan. Repayments only start after this deferral period.

• Full deferral period :

  • No repayments are made during this period, neither for the principal nor for the interest.

  • The interest accrued during this period is generally capitalized (added to the initial loan amount).

• Repayment period :

  • Once the deferral period is over, the borrower starts repaying according to a standard plan, often in installments that include both the principal and the interest.

  • The amount to be repaid is higher due to the capitalization of interest.

Step loans are not yet natively supported by Invvest.

These are loans where the monthly payment changes during the course of your loan. Generally, the principal to be repaid is low at the start, and then the monthly payment increases.

To temporarily address (pun intended) this limitation, there is a workaround where you can add each step of the repayment schedule (and its details) as a separate loan.