The unpaid interest on loan is cllaed
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A deferred interest loan postpones interest payments till after a certain period of time. ... Mortgages can also include deferred interest options, in which the unpaid interest is added to the principal balance of the loan, also known as negative amortization.
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The unpaid interest on the loan is called Deferred Interest.
- Deferred interest is the payment of the interest that was due on a loan during a distinct course of time.
- One does not settle any interest considering their entire balance is paid before the loan period ends.
- Someone does not pay the loan credit before the specified duration of time then the interest payments start getting accruing.
- They are generally encountered on credit cards or proffered by retailers. Generally not considered under financially prudent.
- Deferred interest is basically offered for a distinct duration of the span where no extra interest is levied.
- Interest can also be included in mortgages where the feature works slightly different
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