Last Updated: 05 Aug 2025
Category: All
Understanding loan terms is vital before opting for any loan. The moratorium period is a key concept that can help borrowers plan their finances better and avoid unwanted surprises.
The moratorium period in loan is the specific duration during which a borrower is not required to make EMI payments. This window is typically offered at the start of the loan tenure, giving the borrower ample time before the repayment cycle begins.
In layman's language, the moratorium period is a break from loan repayments that can be incredibly useful during times such as:
The moratorium period meaning can be described as a relaxation phase granted by the lender, which allows borrowers to postpone their EMIs for a few months.
While this sounds convenient, it's important to note that interest usually continues to accrue during this time. While you may not be making payments, the overall loan cost could increase.
A moratorium on loans doesn't mean a waiver - it simply allows a delay.
Suppose you take a personal loan through the Kissht app. If the lender offers a three-month moratorium, your EMIs will begin from the fourth month. However, the interest generated in the first three months may either:
Loan Details:
If there is a three-month moratorium period, interest will accumulate during those three months. Using a personal loan EMI calculator, you can compare the difference in total repayment with and without the moratorium.
A moratorium on loans can be a practical feature during uncertain financial situations. It provides:
Students: Often benefit from this provision when they take education loans.
Salaried Individuals: Those facing temporary pay cuts or relocation may find this useful when applying for a personal loan.
During the COVID-19 pandemic, several banks and financial institutions extended moratorium periods to help borrowers stay afloat. This emergency arrangement showed how flexible lending terms can offer temporary relief, even though it adds to long-term costs.
Before opting for a moratorium period in loan, evaluate these factors:
Even if you're not paying EMIs, the meter is still running. Understand how this will affect your total repayment.
The lender may extend your loan term or increase EMIs after the break. Know which structure suits your repayment ability.
Generally, availing a moratorium on loans doesn't hurt your credit score, but missing EMIs after the period ends certainly will.
Borrowers looking for clarity and convenience can benefit from tech-driven solutions like Kissht.
Kissht specializes in instant loan approvals, making it a preferred choice for those in urgent need of funds. Even if your financial status changes mid-way, the app's support team can help assess eligibility for a moratorium on loans or provide alternative options.
It is always a smart move to run the numbers. A personal loan EMI calculator becomes crucial when you're considering a break in repayments.
Enter the following details:
This will show you how different moratorium lengths change your EMI, giving you a clearer picture of affordability and assisting in planning your monthly finances.
A one-time instant loan may seem convenient today, but if you are opting for a moratorium period, you must understand how it adjusts your payment schedule. The digital tools of Kissht ensure you make informed choices.
It depends on the lender. Some may allow it during hardships, but it's subject to approval and may impact your repayment structure.
Not really. If it's officially granted and documented, then it doesn't impact your score. Missing payments after the moratorium, however, can cause damage to your credit profile.
It's up to the type of loan taken and lender's internal policies. It can range between one to six months.
Not necessarily. It depends on the lender and the loan agreement. It is always recommended to confirm before applying if a moratorium period is offered.
Email: [email protected]
Phone: 080 44745884 / 080 62816309
Location: Mumbai, Maharashtra