Banks are competing in promotional offers for their and future clients. One of the promotional offers of banks that they offer to clients is the possibility of postponing one or even several installments of a cash loan. It looks more or less like, for example, we take out a cash loan for Christmas expenses, and we start paying it back only in the spring. This is a very good option for people who know that in a few months they will be in a better financial position.
Credit holiday or Holiday credit
After the credit vacation period, the cash loan repayment plan remains the same. This cash loan can be a very attractive proposition for people with seasonal income. Before the financial harvest period, such people often barely make ends meet, while at the time of the seasonal boom they have a lot of cash earned. Seasonal work is also often associated with the need to invest your own cash before the season. At that time, a cash loan with deferred payment will be very useful. If there were no option to postpone cash loan installments, they would have to repay the loan from the first month. Very often, banks grant cash loans with deferred payment to various types of entrepreneurs to cover the costs of their day-to-day operations, as well as for necessary investments that will not bring the first profits from the first month.
Banks different approach how the cash loan be repaid
Banks have a very different approach to how the remaining part of the cash loan will be repaid. Sometimes the money is transferred to the remaining credit balance and the capital installments increase accordingly. Another method is that the installments of the cash loan with deferred payment do not increase, but the number of repaid installments increases. In addition to deferring loan installments, some banks also offer a reduction in their interest rate. Many banks do not charge any fees for credit holidays. Sometimes banks make the option of granting a grace period in the repayment of cash loan installments dependent on the length of their early repayment, in which way the best customers are rewarded.