What is the purpose of a moratorium?
A moratorium is a temporary halt of business as usual, or a suspension of some law or regulation. Most of the time, moratoriums are intended to alleviate short-term financial hardship or provide time to resolve related issues.
What is an example of a moratorium?
The definition of a moratorium is an authorized delay in an activity or obligation. An example of a moratorium is a deferment on the payback on loans. A legal authorization, usually by a law passed in an emergency, to delay payment of money due, as by a bank or debtor nation.
What is the meaning of loan moratorium?
A moratorium period is a period during a loan term when the borrower is not obligated to make a payment. It is a waiting period before the borrower starts making fixed monthly payments.
What does moratorium mean in law?
A moratorium is the authorization to either postpone the repayment of debts or performance of obligations or to suspend some activity or law for a period of time, often indefinite in duration, until the purpose for which the moratorium was granted is satisfied or resolved.
Is interest calculated in moratorium period?
There are no extra charges for availing the moratorium, however interest at the existing rate will be continue to be charged on the outstanding principal amount for the moratorium period, which will keep getting accrued.
Is moratorium period Good or bad?
It reduces your financial stress and gives you a breathing space to plan your finances better. You can use the moratorium period to plan your monthly income and expenditure to repay your EMIs. During this period, you can save funds for subsequent EMIs or pay for other expenses.