loan deferral

**Loan Deferral**

A loan deferral is an agreement between a borrower and a lender that temporarily postpones loan payments. This option is often granted during financial hardships, allowing borrowers to delay payment without negatively impacting their credit. Loan deferrals can provide short-term relief by suspending principal and/or interest payments for a specified period. They are commonly used in student loans, mortgages, and personal loans to help borrowers manage unexpected financial challenges.