 Bullet loans should be contrasted with amortizing loans, where the amount of principal is paid down over the life of the loan.There is no requirement that a loan be either a bullet loan or an amortizing loan; combinations of all sorts exist.For example, a loan may have a grace period during which no principal is paid; partial amortization during the remainder of the loan; and a bullet payment at the end of the loan that is some percentage of the original principal.