Deferred Payment Loan

Loan with a deferral period where interest accrues but no payments are made. Amortization begins after the deferral ends.

Loan amount ($)

Annual interest rate (%)

Deferral period (months)

Repayment period (years)

Payment after deferral

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Accrued interest during deferral

—

Balance at end of deferral

—

Total interest over life of loan

—

Total paid (lifetime)

—

During deferral, unpaid interest is capitalized (added to principal), so the payment amount is based on a larger balance once repayment starts.