Equal instalments: If you opt for
repayments in equal amounts, then the periodic repayments (i.e.
principal and interest) will always be the same. At the beginning of
the term, you repay less principal and more interest. Towards the end
of the term, the ratio changes and you repay more principal and less interest.
Equal principal repayments: If you choose for equal principal
repayments, you then pay the same part of the capital back on each
principal due date. As the interest is calculated on the outstanding
principal, the instalments you have to pay (i.e. interest and
principal) reduce over time. For this reason, they are referred to as
Grace period: You can have a grace period to
postpone the first repayment. The length of that period depends on
your credit facility and is determined in consultation with your
KBC relationship manager.