What is a deferred capital or interest?

Deferred capital repayments

The capital deferral period corresponds to the period during which you do not repay the loan capital.

During this period you only pay the interest on the loan, unless the capital deferral is combined with an interest deferral.

Deferred interest

The interest deferral period is the period during which you do not pay interest on the loan. The interest is then capitalised, i.e. it is added to the amount originally borrowed, and in turn bears interest for the lender.

The interest deferral period is always accompanied by a capital deferral.

If you wish to benefit from an interest or capital deferral period, you will have to negotiate this with your lenders.