Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Payment in Kind (PIK) interest/ Accrued Interest

Payment in Kind (PIK) interest accrues and capitalises periodically over the life of the debt instrument, thus increasing the underlying principal (i.e. compound interest). This is typical of development loans where there is no income at the asset. 

Source: INREV | Date: 26 February 2020 | ID: D0710 | Version: 2