Definition

Add-on method

Add-on method is a procedure for calculating a consumer’s loan rate in which interest is assigned on the full principal of an installment loan.

Share it:  Cite

More from this Section

  • Proximate cause
    Proximate cause is factor causing damage to property for which there is an unbroken chain ...
  • Customer profitability analysis
    Customer profitability analysis is a method for evaluating a customer’s loan request ...
  • Family purpose doctrine
    Family purpose doctrine is a concept that imputes negligence committed by immediate family ...
  • Real interest rate
    Real interest rate is the interest rate adjusted for expected changes in the price level ...
  • Loan participation
    Loan participation is the agreement under which a bank will share a large loan with one ...