Meaning of “add-on interest” in the English Dictionary

business-english dictionary

"add-on interest" in Business English

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add-on interestnoun [ U ]

uk us BANKING

interest that is added to the principal (= original amount) of a loan. The loan payments are equal to the interest added to the original amount divided by the number of months of the loan.

(Definition of “add-on interest” from the Cambridge Business English Dictionary © Cambridge University Press)