What is a forward loan?
What is a forward loan?
A forward loan is a special type of credit agreement that is concluded in the present but disbursed in a future period, often after the fixed interest rate period of an existing loan has expired. The primary purpose of such a loan is to lock in currently favorable interest rates for the future, providing financial stability and planning security. This offers the borrower a level of protection by securing against potential future interest rate increases. It is a forward-thinking financial strategy designed to minimize future financial risks.