What are credit holidays and how can I take advantage of them?

Credit holidays are nothing more than a postponement or suspension of loan repayment. If for some reason you cannot pay the loan installments, you submit an application for a loan holiday to the bank. This is an ideal way of a situation when someone has financial problems, because, for example, he changed his job or his income decreased. However, you must remember that each institution handles such an application differently.

If the borrower has so far conscientiously repaid his liabilities, then there should be no problem with it. On the websites of most banks, we will find prepared applications that are ready to be completed. Credit holidays may apply to the entire installment or only a certain part.

In the first case, the borrower will pay neither interest nor the base part of the loan. In the second, the repayment of the capital part will be suspended, but the debtor will still have to repay

Credit holidays sound cool because they are associated with rest, but they will only give you temporary relief. In fact, they are just a "suspension" of repayment and will extend the loan period by this time. If you decide to submit an application, be sure to ask if you incur any costs on this account and whether interest is charged during the holidays. I know that at least some banks did this.

Credit holidays are a break in the repayment of loan installments. It usually lasts 3-12 months. Depending on the bank, they will work a little differently, but the main difference is whether you pay interest during this period or do not have any repayments.