Loan Moratorium: Through salary, a person can only fulfill his needs and responsibilities, cannot add huge capital. This is the reason why people take loans for housing, cars and other major needs.
Due to this, their work is also done and their loan is also being completed gradually through EMI. But sometimes due to loss of job or any other reason, the situation becomes such that it becomes difficult to pay the EMI of the loan.
If the EMI of the loan is not given for three months, then the bank can also declare the borrower a defaulter and in such a case his CIBIL score gets affected and there is a problem in taking loan in future. In such a situation, Loan Moratorium can be helpful for you. Through loan moratorium, you can ask the bank for some time to repay the installment. Know here what is loan moratorium and how it can be a relief for you.
What is loan moratorium
For loan moratorium you have to apply in the bank. If you have a valid reason, then through loan moratorium, you are given a short time from the bank. In this, the person does not have to pay the installment for a certain time. This gives a lot of relief to the person struggling with financial problems.
Interest has to be paid even during the grace period
Through loan moratorium, you definitely get some time to pay the installment, but your EMI is not waived in this, nor do you get any concession in the interest charged on it. In the period in which you are exempted from the EMI of the loan, you also have to pay the interest charged on the loan. The amount of interest only is very less as compared to the entire EMI of the loan.
These are its advantages
Many people think that when interest has to be paid, then what is the use of loan moratorium? So the advantage is that if you skip EMI normally, then penalty has to be paid along with interest. Along with this, your CIBIL score is also bad. But with the loan moratorium, you get time from the bank to stop the EMI for some time. In this case, there is no effect on your CIBIL score.
Who can apply
Now it comes to who can apply for loan moratorium, then the answer is that any company or person can apply for loan moratorium. If your reason is valid, then you can apply for moratorium from the bank for home loan, car loan or credit card repayment etc.
