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What is a loan holiday for term loans?

In: Personal Finance, Loans, Money Management [Edit categories]

Answer:

A loan holiday is some period of time (e.g., one payment period, two payment periods, etc.) where the borrower is not required to make a payment and will not be penalized as a result.
For most loans, a holiday will not stop the loan from accruing interest, so when using a loan holiday, remember, you are paying additional interest for the privilege.

First answer by Madbuns. Last edit by Madbuns. Contributor trust: 217 [recommend contributor ]. Question popularity: 3 [recommend question].

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