The Home Loan Moratorium Explained: What You Need To Know

Loan Moratorium is the period during the loan term when you can defer from your repayments but as soon as the period ends you have to pay your fixed monthly payments. As soon as the loan is disbursed, your EMIs do not start immediately. You can repay your loan after you complete your course or when you start earning and this is the moratorium period. But you have to pay the simple interest added to the principal amount.


If you are looking for small scale business loan then you can reach out to Vistaar, one of the best NBFC in India. 


What Is A Home Loan Moratorium?

It is the period during the loan term when you can defer from your repayments but as soon as the period ends you have to pay your fixed monthly payments. This loan condition is often coupled with the tenure of the loan and the term of the loan but the Home Loan Moratorium does not apply to Term Loans. 

For a Home Loan, the term is the tenure of the loan or the period during which the loan must be paid. 

If you get a Home Loan to buy a property for long-term use, for example, 3 years, then it can be extended to 5 or 7 years. If you are not able to pay EMIs for the loan period, you can choose to buy a home with the mortgage or take a home loan for other purposes or the house loan can be a part of a home loan.


When Is The Moratorium Period?

This depends on the amount that you have borrowed and the period of your repayment is given in the loan agreement. If you have borrowed Rs 5 lakh, you will be allowed to repay your loan for 6 months and then all the remaining 4 months. 

The basic interest rate that is added to your principal amount is 4% and then you have to pay 10% of the loan amount every month for the remaining period. You can pay either the principal amount or the simple interest. 

Why should I pay the interest? You will be making interest payments if you do not pay the principal amount. You have to pay it even if you are unable to repay your loan in full. It is not a problem for you to pay interest but it might not be a big deal to pay the principal amount which is still due.


What Are The Benefits Of A Moratorium?

– Reschedule and extend your repayment period – Avoid a lump sum payment of principal when you make a repayment. – You will know that you will have your loan paid back, with ease What are the benefits of a partial moratorium? – You can pay as much of your EMIs as you can before the end of the moratorium period, if you can – Pay the basic interest on your EMI, but delay paying principal What are the benefits of a full moratorium? – You do not have to pay EMIs during the moratorium period, but have to make your repayments – You cannot pay principle on your EMIs during the moratorium period, but have to pay basic interest – You pay the full principle amount once the moratorium period is over. Is it beneficial to get a home loan during a home loan moratorium?


How To Apply For A Moratorium?

Lenders allow you a period of 2 months from disbursal to decide if you want a moratorium period. You can apply for moratorium period and once the moratorium period is over, you will have to start your repayments immediately. Once you complete the payment of your principal then the amount due is added to your principal and you have to start repaying again. 

If you have done any prepayment in the past you can have this period of moratorium. The amount that you can have the moratorium period is usually 2 months. You can start to repay your principal once you make the prepayment or early payment. You cannot have this for more than 2 months. What if I am considering to pay for EMIs earlier than the due date?



The Home Loan Moratorium period can either extend or shorten depending on the loans given to you and the repayment period.


You may also like


Why It’s Become So Difficult To Find Employees


A staggering 93% of organizations in the healthcare industry say that recruiting has become more difficult in recent years. Eighty-three percent of IT companies report difficulty finding qualified candidates.

Internal vs. external factors in recruiting

According to the responses, there are two main categories of factors that influence recruitment: internal and external factors. Both the organization’s own activities and external influences are considered internal factors.

When faced with adversity, nearly three-quarters of people blamed it solely on circumstances beyond their control. Covid-19, industry attractiveness and political and economic factors are the most common outside influences on recruitment.

It is possible for organizations in the sector to benefit and suffer from external factors at the same time.

Getting to know potential employees

In the survey, only 58% of respondents said their organization used a recruitment system to manage their hiring.

Communication with job candidates is critical to the recruitment process’s success. Candidate perceptions of the new employer…

Read More

Recruiting the Best and Brightest Amid Today’s Talent Shortage


With the resurgence of the employment market, firms are scrambling to fill openings fast, resulting in a fierce rivalry. Recruiters need to tap into their creative juices and use them to alter their hiring procedures and applicant experiences or risk losing out on top-tier candidates.

Recruiters may obtain an advantage in today’s candidate market by catering to candidates’ demands and providing an improved application process. In the following examples, recruiters may use these insights to improve their ability to attract the best candidates.

Employer branding should be the first step in the process.

When it comes to hiring for high-level positions that need substantial training and specialized degrees, you have to stand out from the crowd. It is possible for employers to stand out from the crowd of similar job postings and attract the attention of top candidates by creating a distinct brand identity for their company.

48 percent of recruiters believe that…

Read More

How Job Seekers Can Make Themselves More Attractive To Recruiting Agencies?


The recruiting industry, like the labor market, changes rapidly and unexpectedly. Employers and recruiters are finding it increasingly difficult to find and hire top talent as the workforce recovers from COVID-19 and unemployment rates continue to fall.

Focus on Your Personal Brand First

For some jobs, having a strong personal brand is absolutely necessary. Candidate online personas are highly sought after by recruiters. However, even the most well-intentioned job seekers may not be aware of the fact that their other social media pages could be a red flag for recruiters who may be reluctant to refer such candidates to their clients. The same could be said for employers, who may view such online behavior as immature or irresponsible and not in keeping with their values.

Focus Your Energy

The number of applicants for each open position can range from a few dozen to a few hundred. Only apply for positions for which you…

Read More

The Main Stages Of The Tax Campaign


The tax form, or business tax declaration, documents the tax administration on the company’s financial performance. It consists of a series of declarations and annexed documents based on which the taxable result of the company is established. Tax resolution software is mandatory for all companies, except for self-employed entrepreneurs.

How to complete a tax return?

The tax return is drawn up based on accounting data appearing in the annual accounts published at the end of the financial year. This, therefore, opens what is called the tax campaign of the company. The main components of the tax return are:

  • The declaration of the result, the allocation of the result, and the mention of the deficit, if necessary
  • The table of provisions, receivables, and payables
  • Realized capital gains or losses
  • The added value produced
  • The composition of the share capital and details of any holdings in subsidiaries

Normal or simplified tax return?

Depending on whether the company is subject to…

Read More

3 Reasons Why The Outsourced Chief Marketing Officer Promises Better Prospects


Marketing campaigns do not always succeed in delivering as per your expectations. Nevertheless, you cannot compromise the company’s growth because of some faulty strategies of the in-house CMO. What did go wrong exactly in the marketing strategies? Ask the outsourced chief marketing officer, and you will get the correct answer.

Basically, someone considering the strategies from inside the company cannot assess the implications better than the expert considering the entire scenario as a third party. If you are reading this article, the chances are high that you are dissatisfied with the present revenue generation. But you just have not got enough reasons to invest in outsourcing for CMO.

Reason #1: Prioritize the trust factor

While maximum chief marketing officers working with the companies are thinking fanatically about new marketing campaigns, the professionals tend to miss out on small but significant factors. One such factor is trust. What’s the use of marketing…

Read More

Explore the Ultimate Benefits of Automated Trading


Auto trading permits exchanges to be put rapidly and effectively founded on foreordained boundaries and diminishes the human blunder figure present conventional trading frameworks. But, by the by, the utilization of this sort of innovation isn’t liberated from risk. In this article, we take a gander at the central issues to think about while choosing to utilize automated trading frameworks.

Auto trading or an automated trading framework is a component for partaking in coordinated monetary business sectors comprising of utilizing an algorithmic trading framework with which financial backers place exchanges to trade monetary instruments consequently. A calculation program executes orders by carrying out foreordained or financial backer customized rules.

Also, auto trading permits a few exchanges to be done in a similar timeframe and whenever of day, rather than the orders made by a customary broker. This is because the boundaries for trading monetary instruments are foreordained by the calculation program…

Read More

Is It Possible To Learn Share Market Courses From Home?


Nowadays, many people try to enter the field of share market, but due to a lack of knowledge, many people hesitate to join. And the best option to overcome these hesitations is by properly learning the tricks and rules necessary to be in the share market. Several institutions and experts are available for people to learn about the share market and their working style. Moreover, they offer share market courses online and help many people to learn about share market trading from the comfort of their homes. And these courses also provide various materials that help people gain more knowledge.

Many institutions provide various trading courses for their students to teach them about trading and all the tips and tricks that help them be more profitable and create a career through this option. And these online courses are the advanced version of trading courses, and people interested in trading can…

Read More

Why Do You Need To Choose A Reliable Taxi Service?


Do you find it challenging to get to your city daily? The majority of us believe that owning a car is the most efficient mode of transportation in any city. However, driving to work every day in the early morning becomes a tedious effort. You may make use of the most excellent cab service with Sri Ramana Travels in major cities.

The tirupati taxi services are the finest for getting to the airport or hanging out with pals. You can book a taxi without breaking a sweat simply using your smartphone. Isn’t it sounding fantastic? When you use this cab service, you can take advantage of several advantages. The following are the main benefits of reliable taxi services to have a pleasant experience for a long duration.

Pickup and drop facility with taxi services

When you order a Sri Ramana Travels cab, you save time and eliminate several difficulties. If you need…

Read More