1. Interest User Guide
  2. Processing Interest
  3. Introduction
  4. Methods of Interest Collection

1.1.3 Methods of Interest Collection

Bearing

The interest is liquidated on schedule payment date(s).

Discounted

In this interest payment method, the interest is deducted at the time of initiating the contract.

True Discounted

In this interest payment method, the interest is calculated on the principal in a manner that is slightly different from the discounted method. The interest rate is applied on the principal instead of the nominal, as it is done in the discounted method.

Parent topic: Introduction