A 'blind spot' may be built into the repayment schedule of a term loan wherein:

Question

Quizplus · Accepted Answer

A blind spot may be built into the repayment schedule to allow for a shortage of cash on the borrower's part. This means that there may be a period where no installment is due, providing some flexibility to the borrower in case unforeseen circumstances arise. However, it is important to note that this should be explicitly stated in the loan agreement to avoid confusion or default on the loan.

A 'Blind Spot' May Be Built into the Repayment Schedule