A simple term loan means the one-time issuing of funds for a term specified in the loan agreement. Once the loan agreement is signed, the full amount is transferred into the borrower’s settlement account. Interest is added to the loan balance as of the morning of each day for the actual number of days the borrower uses the funds. Interest is repaid on a monthly basis, while the principal is repaid either according to a schedule or upon the expiry of the loan agreement. Pre-term repayment is allowed.