Loan Deferment

/ˈloʊn dɪˈfɜrmənt/

Definitions

  1. (n.) A temporary suspension or postponement of loan payments allowed by the lender, often granted due to financial hardship or special circumstances.
    The borrower requested a loan deferment due to unexpected medical expenses.

Forms

  • loan deferment

Commentary

Loan deferment is distinct from forbearance; it formally postpones payments without accruing interest in some cases, so precise terms should be clearly drafted.

This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.

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Amicus Docs | Loan Deferment Definition