To be eligible for an Interest Prepayment Loan:
The Interest Prepayment Loan has a term equal to the relevant interest prepayment period on your Investment Loan (up to 12 months).
Your Interest Prepayment Loan is repayable monthly in arrears via principal and interest payments. Your principal repayments are calculated on a pro rata basis over the term of your Interest Prepayment Loan. At the end of each month, the required principal repayment will reduce the outstanding balance of your Interest Prepayment Loan such that, by maturity, the balance will reduce to zero.
You can choose a fixed in arrears or variable in arrears interest rate on your Interest Prepayment Loan. Interest is calculated daily on the outstanding balance of your Interest Prepayment Loan and charged monthly. As the outstanding balance on your Interest Prepayment Loan will reduce over the term of your loan, your monthly interest charges should also reduce.