The repayment_type property describes the repayment conditions of the loan. In short, the repayment type determines the contractual agreement the lender has made with the borrower regarding repayments:


The borrower will be meeting the accrued_interest amounts but not reducing the balance of the loan.


The borrower will be paying the interest as well as the capital in an amortising manner such that the balance amount will be decreasing to zero over the life of the loan.


The borrower’s repayment terms of the loan are a combination of repayment and interest_only. For example, the borrower typically has a repayment schedule but has an interest_only schedule during the summer.


The contractual terms do not specify a repayment_type and the borrower is free to pay the interest and/or capital on their own schedule. Credit cards and other credit facilities might have repayment_type = “other” characteristics. We use “other” here instead of “none” as it is assumed all loans are made under the premise of repayment.