What is a simple interest loan?

A simple interest loan accrues interest daily from the day the contract is signed until the day the loan is paid in full. The interest is based on your loan balance and interest rate. When your principal balance decreases, your monthly interest amount decreases too. The loan is amortized so your monthly installment does not change for the life of the loan, but if payments are received late, there is the possibility of a larger-than-usual one-time payment due at the end of the loan (balloon payment). If you have more questions, we are here to help! To speak with a Driveway Finance Corporation (DFC) representative, dial 1-855-723-2669.