Deferred Interest

A deferred interest is a type of loan or finance agreement where the borrower does not pay any interest on the loan for a specified period of time. This can be beneficial to borrowers who need a short-term loan, as they can take advantage of the no-interest period before having to start paying back the loan. After the interest deferment period ends, the borrower then pays off the principal plus any accrued interest at a later date.

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