Simple loans can be used for various purposes, including home improvements, big-ticket purchases like furniture or appliances, or consolidating other debts into a single, manageable payment.

Lenders calculate how much interest you’ll pay with each payment in two main ways: simple or on an amortization schedule.

Simple interest loans have a flat monthly payment, so there's predictability with payoff as well. As long as you make your monthly payment on time, you'll pay off the loan according to schedule.