Maksepuhkus

Maksepuhkus, a term originating from Estonian, translates to "payment holiday" or "payment break" in English. It refers to a period during which a borrower is allowed to temporarily suspend or reduce their loan repayments to a lender. This arrangement is typically granted by financial institutions under specific circumstances, often in response to a borrower's financial hardship.

The purpose of a maksepuhkus is to provide temporary relief to individuals or businesses facing unforeseen difficulties that impact their ability to meet their regular loan obligations. Such difficulties might include job loss, significant illness, or other unexpected financial setbacks. By allowing a pause in payments, a maksepuhkus can help borrowers avoid defaulting on their loans and maintain a positive credit history.

During a maksepuhkus period, the terms of the loan are temporarily altered. This can involve a complete cessation of payments, or a reduction to an interest-only payment or a significantly lower installment. The exact terms are negotiated between the borrower and the lender and are usually documented in an agreement. Interest often continues to accrue during the payment holiday, which means the total amount repaid over the life of the loan may increase.

Once the maksepuhkus period concludes, the borrower is expected to resume their regular loan payments, often with adjusted terms to accommodate the accumulated interest and the remaining loan principal. Lenders may offer different options for resuming payments, such as extending the loan term or increasing future installments. The availability and specifics of a maksepuhkus vary significantly depending on the type of loan, the lender's policies, and the borrower's individual situation.