Credit Holidays | Repayment of Loan in Installments
Each commitment made regardless of its name involves a repayment obligation. No matter how much we borrowed, we will have to give it back with interest due. It is also up to us to cover any additional costs resulting from the loan or loan agreement. An assessment at hottoast.org
We provide our commitment in the form of monthly installments. Their amount depends on the amount of our loan, the loan period, ie the number of installments and loan terms.
However, certain and permanent for each loan is that installments must be repaid in a timely manner, and any delays may have unpleasant consequences in the form of interest on late repayment of the loan.
So before we decide to take a loan, we should consider whether we can afford it. However, there are situations that we are not able to predict. Our financial problems may be caused by a random event that we did not have any influence on. What to do in that case?
Credit holidays – concept
In this case, with the help of they can come on credit holidays. Holidays probably everyone associates primarily with free time. This is also not the case here. Credit holidays are a break in loan repayment.
In other words, this deferment of repayment of loan installments. As a rule, we decide when we will apply for granting them. However, in our opinion, we should do it with care and in a situation when we really need it.
An application for credit holidays made without a need, yes, that will release us for some time from repayment of the loan.
However, if it turns out that in a short time we will face real financial problems, we may not have a chance to postpone the repayment as we have recently used this option.
On what basis we will receive credit holidays
Here, unfortunately, there is no unambiguous answer. But why? Because we apply for a credit holiday at the bank with a separate application, independent of the previous loan agreement.
It may also turn out that a given bank does not have such a product in its offer. With all certainty, however, all banks that grant credit holidays do so on their own, separate from other banks.
It is worth asking about the credit holidays before signing the loan agreement. Credit holidays in accordance with the above, are granted for different times and on different terms, which are determined by the bank in which we have borrowed.