EMI Without Moratorium
₹0
EMI After Moratorium
₹0
Outstanding After Holiday
₹0
⚠️ Extra Interest from Moratorium
₹0
Total Repayment (with Moratorium)
₹0
Year-wise Comparison
| Period | Without Moratorium | With Moratorium | Difference |
|---|
What is a Moratorium Period?
A moratorium (also called a repayment holiday or EMI holiday) is a period after loan disbursement during which you are not required to pay any EMI. While no payments are due, interest continues to accrue on the outstanding principal at the loan interest rate.
How is Interest Charged During Moratorium?
During the holiday, simple interest is added to the principal each month. At the end of the moratorium period, the new (capitalised) principal is used to calculate your revised EMI for the original remaining tenure. This is why a moratorium always results in a higher post-moratorium EMI compared to regular EMI.
When Does a Moratorium Make Sense?
- Under-construction property purchase — helps manage cash flow during construction
- COVID-19 era RBI moratoriums — government-mandated repayment breaks
- Startup businesses that need early operational cash flow
- High-value education loans where income begins post-graduation