Glossary › Moratorium
What is Moratorium?
A pause on loan repayments — common in education loans during study.
During a moratorium you usually make no payments, but interest often still accrues and is added to the principal, so the balance grows. Repayment begins after the moratorium plus a grace period.
Example
A 3-year study moratorium on a ₹20,00,000 loan grows the balance before EMIs start.