Uncompounded

Uncompounded refers to a financial term used to describe a situation where interest or other charges are not added to the principal amount of a loan or debt. This means that the borrower only pays the original amount borrowed, without any additional fees or interest accrued over time. Uncompounded loans are typically used for short-term borrowing, such as payday loans or short-term lines of credit, where the repayment period is relatively brief. In contrast, compounded loans involve the addition of interest to the principal amount, which can result in a larger total repayment amount over time. The term "uncompounded" is often used in legal and financial contexts to clarify the terms of a loan or debt agreement.