What is the Term of a Loan?


The word “lack” as such, means lack of something, therefore, the period of lack of a loan , is a period of time in which one of the parties is allowed the total or partial non-fulfillment of the signed contract, is to say, to delay the payment of the installments of the return of the loan.

Normally, the term “grace period” or “grace period” is usually attributed to mortgage loans , so we would be talking about a mortgage deficiency.

WHAT IS THE LACK OF A MORTGAGE?

The period of lack of a mortgage is a space of time that allows you to pay your monthly fee more reduced.

In this period of time you can pay either the interest, or defer payment of the installments in full.

And you will ask yourself, what is the use of the period of lack of a mortgage ? Well, the lack of a mortgage is suitable for carrying out business projects, obtaining a home or for social purposes.

THE LACK OF A LOAN

The grace period of a loan or “grace period” called colloquially, is a time slot in which the client discharges the obligation to pay their installments with the Banking Entity.

We can highlight two types of loan:

  1. Total lack . In this lapse of time the client pays nothing, neither interest nor capital.
  2. Lack of amortization . During this type of shortage , the client only makes the payment of the interest, leaving for later the payment of the capital. Thus, the monthly fee that must be paid is more accessible to the client, since it is lower.

However, not everything is as positive as it is painted, but the period of lack , also has its drawbacks.

Although in the first place it seems that it helps you with the payment of the quotas to reduce them and that you do not arrive with the water at the neck at the end of the month, the period of lack of a loan , causes that it becomes more expensive since the interests follow its course for more time; something positive for the Bank, since the amount that initially was, will end up being greater by the sum of the interests.

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