Moratorium periods: relief now, cost later
Interest usually keeps accruing during a moratorium even when nothing is payable.
3 min read
What you need to know
A moratorium defers repayment while a project is built or a machine is commissioned. In most structures interest continues to accrue and is either capitalised into the principal or payable separately as pre-EMI interest.
Ask explicitly which of the two applies. Capitalised interest quietly increases the loan you eventually repay.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Frequently asked questions
What is the main takeaway from “Moratorium periods: relief now, cost later”?
Interest usually keeps accruing during a moratorium even when nothing is payable.
What should I check before acting on this loan basics guide?
Review the practical points in the guide against your income, obligations, documents and lender requirements.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.