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DEVTECH FINANCE
BANKING SYSTEM MODULE
LOAN MORATORIUM
PERIOD
(MEANING, PURPOSE,
INTEREST & EXAMPLE)
BANKING
MADE
EASY
LOAN MORATORIUM PERIOD
• MEANING - Moratorium period refers to the particular duration in the
loan tenure when the borrower is not required to make any repayment in
form of EMI. This period is also known as EMI holiday. Moratorium in
terms of law means delay or suspension of an activity in a legal context.
• PURPOSE - Usually, such breaks are offered to help individuals facing
temporary financial difficulties or to help them plan their repayment well.
• INTEREST - Borrower can opt to serve interest during moratorium period
or after moratorium period in form of higher EMI. Simple interest is
charged for the number of months borrower have taken
the moratorium on the loan principal amount outstanding.
• Generally you will find moratorium period in home loan, education loan,
project finance etc.
EXAMPLE
 EDUCATION LOAN
• Purpose Of Loan – Post Graduation
• Course Time Period – 2 years ( May 2019 – May 2021)
• Loan Amount – 4,00,000
• Rate of Interest – 9.15%
• EMI – 5100/- per month
• Moratorium Period – 36 Months or 3 years
• Repayment – 120 Monthly Installments
• Whether Interest will be served during Moratorium – Yes / No
RECENT NEWS HEADLINE
• ECONOMIC TIMES - The Reserve Bank of India (RBI) announced an
extension of the moratorium on loan EMIs by 3 months, i.e. till August 31,
2020 in a press conference dated May 22, 2020.
• The earlier three-month moratorium on the loan EMIs was ending on May
31, 2020. This makes it a total of six months moratorium on loan EMIs
(equated monthly installment) starting from March 1, 2020 to August 31,
2020.
• The extension of three-month moratorium on repayment of term loans
means that borrowers would not have to pay the loan EMI installments
during the moratorium period.
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DEVTECH
FINANCE

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Loan Moratorium Period.

  • 1. DEVTECH FINANCE BANKING SYSTEM MODULE LOAN MORATORIUM PERIOD (MEANING, PURPOSE, INTEREST & EXAMPLE) BANKING MADE EASY
  • 2. LOAN MORATORIUM PERIOD • MEANING - Moratorium period refers to the particular duration in the loan tenure when the borrower is not required to make any repayment in form of EMI. This period is also known as EMI holiday. Moratorium in terms of law means delay or suspension of an activity in a legal context. • PURPOSE - Usually, such breaks are offered to help individuals facing temporary financial difficulties or to help them plan their repayment well. • INTEREST - Borrower can opt to serve interest during moratorium period or after moratorium period in form of higher EMI. Simple interest is charged for the number of months borrower have taken the moratorium on the loan principal amount outstanding. • Generally you will find moratorium period in home loan, education loan, project finance etc.
  • 3. EXAMPLE  EDUCATION LOAN • Purpose Of Loan – Post Graduation • Course Time Period – 2 years ( May 2019 – May 2021) • Loan Amount – 4,00,000 • Rate of Interest – 9.15% • EMI – 5100/- per month • Moratorium Period – 36 Months or 3 years • Repayment – 120 Monthly Installments • Whether Interest will be served during Moratorium – Yes / No
  • 4. RECENT NEWS HEADLINE • ECONOMIC TIMES - The Reserve Bank of India (RBI) announced an extension of the moratorium on loan EMIs by 3 months, i.e. till August 31, 2020 in a press conference dated May 22, 2020. • The earlier three-month moratorium on the loan EMIs was ending on May 31, 2020. This makes it a total of six months moratorium on loan EMIs (equated monthly installment) starting from March 1, 2020 to August 31, 2020. • The extension of three-month moratorium on repayment of term loans means that borrowers would not have to pay the loan EMI installments during the moratorium period.
  • 5. THANK YOU FOR WATCHING DEVTECH FINANCE