Spot FX loans with or without the early-payment option

Spot FX loans with or without  an early-payment option

Spot FX loans are loans whose amounts, interest rates, and terms are fixed for the duration of the loan.

Features

• Without the early-payment option, you can't pay off a loan before it falls due.
• Without the early-payment option, there may be disparities between interest accruals and collections.

With the early-payment option:

• The interest rate is fixed for the duration of the loan but some or all of the loan may be paid off early on one or several occasions before the loan is due.
• Interest accrues and is collected at maturity. However whenever an early payment is made, the interest due on the amount of principal paid is accrued and collected at the same time.