Loan repayment holidays are the new thing around in the new age financial technology markets. These holidays provide the borrower with an ideal means to safeguard his or her financial flexibility. In general sense, if you are not in a condition to repay the loan amount as desired and decided under the agreement, you can ask for one or two or three months as repayment holiday.
Repayment Holidays on Existing Loans
The occurrence of financial upheavals has no time frameworks. Circumstances may change without a wake-up call. Many times such circumstances become out of control, and a breakdown stage is reached. You are not in a situation where the designated loan amount is paid on a specific date.
The downside of Repayment Holidays on Loans
The repayment holiday loan has a downside too, though that’s not really the one you are going to call. With loan holidays you will have to pay high APR, and this APR will continue to build up gradually each month. In totality, you will end up paying more than just what you had ever thought in your faintest dreams.