The terms of repayment [of aid] may be the following: Equal principal payments (EPP) - denotes a fixed schedule of equal instalments of principal adding up to the face value of the loan. Interest is charged on outstanding principal and the amount of individual service payments decreases with each payment of principal. In the annuity method, each service payment is established as an equal amount, within which the interest component declines with time while the principal component increases. Lump sum means the loan is repaid in a single amount (principal and interest) at maturity. If interest is paid at various earlier dates, then the repayment schedule is a particular case of equal principal payments and is reported under that category.