Securing Hannav Ledger...
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Glossary
Moratorium is a temporary period during which loan EMI payments are deferred, with interest typically continuing to accrue on outstanding balance.
Moratorium pauses your EMIs for a few months — useful in crisis — but interest still piles up and you pay more later.
COVID-era moratorium allowed EMI pause with interest capitalisation increasing tenure or EMI post-period. Not forgiveness — deferred amounts repay eventually. Credit reporting may note moratorium utilisation.
6-month moratorium on ₹20 lakh home loan at 8% adds ~₹80,000 interest capitalised. Post-moratorium EMI rises or tenure extends by several months.
RBI permitted reporting as standard during COVID moratorium if opted correctly. General moratorium terms vary by lender policy.
Usually compounded into outstanding principal, increasing future interest burden — read lender's restructuring terms carefully.
Some lenders offered paying interest only during moratorium. Availability depends on product and lender discretion.