Jayson Lowe explains unstructured loans, which have no fixed repayment schedule or required periodic payments, unlike car loans or mortgages. Policy loans under the infinite banking concept work this way, letting you control when and how you repay.
Here's a question that we get every once in a while. What exactly is an unstructured loan? Well, pretty simple. It's a loan that has no structure to it. When you think about a structure of the loan, usually what you're referring to is like the payment. So there's a fixed amortization and a payment that's required. So most loans, car loans, mortgages, etc. They're amortized over a certain period of time and there's a required payment even for lines of credits or home equity lines of credits. Typically there's an interest only payment or some payment requirement on a regular basis, usually monthly. So unstructured means there's no repayment that's structured and you get to control the repayment. So that's the case with policy loans for people that practice the infinite banking concept. There is no requirement to make a payment. You get to control the payment at your discretion because you're the banker. Isn't that good? Yeah. Check out our videos, they're awesome.
