What is a repayment deferral?

A repayment deferral is a special arrangement made with your bank, in which it is agreed that you will pay only the interest on your loan for a specific period, while the actual repayment of the loan principal is suspended. This can be an effective way to temporarily reduce your financial burden, as the monthly payments are lower. However, it is important to note that this measure leads to higher overall loan costs, as interest accrues over a longer period.