19 May 2016
The above concept can be explained in the case of loan taken where you are supposed to repay the loan with principal and interest. There are certain due dates when the repayment has to be made. Lets say that the loan is required to be paid after 2 years of acceptance of loan. In such situation, the interest will accrue / due but not payable in the first year (as you will start repaying the loan after 2 years). But in the third year, the interest will be due and also payable on the due date.
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