How is moratorium period calculated?

Moratorium period refers to a temporary pause in loan repayments. During this time, borrowers are allowed to delay their EMI payments without incurring penalties. However, interest continues to accrue on the outstanding principal amount.

Common ways to determine the moratorium period include:

• Fixed Duration: A specific number of months or years is defined upfront.
• Event-Based: The moratorium can be triggered by certain events, such as a job loss, medical emergency, or natural disaster.
• Flexible Terms: Some lenders offer more flexible terms, allowing borrowers to request a moratorium based on their individual circumstances.

It's important to consult your loan agreement or contact your lender directly to determine the specific terms and conditions of your moratorium.
Once the moratorium ends, borrowers must start making repayments that include both the original principal and any added interest from the moratorium period.