Typically, the types of payments can be: Specific periodic amounts. The borrower incrementally pays the lender without any interest. Lump sum. The borrower pays the lender back all at once at the end of the loan term or by the loan’s deadline. Interest-only. The borrower pays what would cover the interest without also paying for the amount they originally borrowed. Interest and principal. The borrower pays back portions of what they originally borrowed and also the interest.