Law Dictionary

To search for a particular term please use the following search box.

forbearance

A temporary postponement of principal and interest payments during which a borrower may only pay the interest on a loan. If a borrower chooses not to pay the interest, it will be capitalized at the end of the period.



A special agreement between bank and borrower to delay or reduce monthly loan payments because of financial hardship.

Source : LawyerIntl.com

Language : English

Return

Return to Law Dictionary Index