What is a hybrid repayment?

Hybrid repayment is a compromise between a bullet repayment (the entire principal is repaid at maturity) and an amortizing repayment (a portion of the principal is repaid with each interest payment throughout the loan term).

A hybrid repayment is when you receive only interest payments for a defined period, then interest payments plus a portion of the principal for the remaining term of the loan.

This type of repayment is often used in specific situations where cash flow flexibility is important.