Loan Moratorium: Difficulty in repaying loan installments! so late with the bank
Loan EMI Delay: It often takes time to get a loan from a bank for a property, vehicle, and other important tasks. For this, the bank asks for the necessary documents from you. After checking these documents, the bank approves your loan and credits the amount in your account. But after that adjustments have to be made to pay the EMI. Often the due date of EMI is missed and penalty has to be paid. But if you are in trouble, you can ask the bank for some time to repay the EMI through the loan moratorium. Any company or individual can apply for loan moratorium. But the reason must be valid. You can apply to the bank for home loan, car loan and credit card repayment etc. So let’s know what is loan moratorium?
What does loan moratorium mean?
A loan moratorium is a period of time given to repay loan installments. That’s why the said person gets relief in case of financial crisis. Through Moratorium, you can stop the tenure of the loan. But neither the EMI is waived off nor do you get any concession on the interest charged on it. That is, during the period in which you are exempted from the EMI of the loan, you will also have to pay the interest on the loan. The interest only amount is very less as compared to the total EMI of the loan.
What is the benefit of loan moratorium?
What is the use of loan moratorium if you have to pay interest? Many people have this question. But when you default in paying EMI, you have to pay penalty along with interest. This affects the CIBIL score. But loan moratorium gives you relief for some time. It has no effect on the credit score.