An end loan is a permanent, long-term loan that begins after construction has been completed. This loan is used to pay off any form of interim financing, such as a construction loan or combination loan. Most interim loans are interest-only loans that can not be partially repaid. The principle and the accrued interest may only be paid in full when the funds from an end loan become available. In some cases, the end loan is used to pay off several interim loans and construction loans. This allows the borrower to consolidate the loans into one lender and one payment. Another advantage is that although there will be an interest rate on these loans, they are for a fixed amount. That means that at some point in the future, the interest will be paid in full and the principle on these loans will begin to reduce.