To combat financial hardships and to relieve consumers of financial burden, the banks temporarily allow consumers who have already availed loan or credit card facilities to pause repayments. The term loan moratorium gained a lot of attention during the global pandemic COVID 19. In India, RBI had instructed banks to allow a three months moratorium on term loan and credit card payments. The EMIs were deferred for consumers who opted for the loan moratorium scheme. I hope this clarifies loan moratorium meaning to you.
Should you opt for moratorium on loan or not?So far, loan moratorium meaning is clear. Let us now look at the pros and cons of opting for a loan moratorium.
Pros:It is a temporary relief in the times of financial crisis.
Banks and financial institutions cannot force you to pay the dues.
On the directives of the apex authorities, your credit score might remain unaffected despite non-repayment of EMIs.
The EMI or dues in the moratorium period are not waived off
The interest on the loan amount continues to imply
You will have to pay additional interest on months for which you had opted for a moratorium.
I hope now you know what is loan moratorium.
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What is Loan Moratorium?
Kaashvi
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2021-06-07T17:31:06+00:00 2021-06-10T17:24:40+00:00Comment
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