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Bullet Loan Agreement

In the banking and financial sector, a bullet loan is a loan that, at the end of the loan maturity, is due to the payment of the entire principal of the loan[1], and sometimes the principal and interest[2]. The same goes for Bullet Bond. A bullet loan can be a mortgage, a loan, a note or another type of credit. Bullet Loans should be contrasted by amortizing loans whose principal is repaid over the term of the loan. There is no requirement for a loan to be a Bullet loan, or a amortization loan; There are all kinds of combinations. For example, a loan may have an additional period in which no capital is paid; partial amortization during the remainder of the loan; and a payment from Bullet at the end of the loan, which amounts to a certain percentage of the initial capital. In the case of a bullet interest rate loan, the borrower is required to regularly pay expected interest; This reduces the lump sum payment at maturity to the loan amount.