What is  Moratorium

  1.                   At this time the whole country is lockdown ,everyone knows that the Reserve Bank brought the information about Moratorium .
    There was never been a situation like this before, most of us have no way of knowing what the Moratorium is. 

Let us see what is Moratorium ?

         Moratorium in a concession offered by a bank in some unusual circumstances when a person takes a loan and difficulty to pay it. The RBI has allowed banks to offer a Moratorium of 3 months  on not just term but also on credit card loans for the period of March 1 to may 30.

            Moratorium means no repayment for 3 months ,but interest on your credit card dues and loan outstanding will keep accuring each month . The credit score will not be hit. Interest rate on credit card  could be as high as 40% . These months does not have to be paid in monthly installments within these months

 Moratorium applicable loans

  •  Housing loan
  •  Agricultural loans 
  • Education  loans
  • Personal loans
  • Car loans 
  • Gold loans 
  • consumer loans

 Does this  include credit cards

 This includes the repayment of credit cards .

Banks  with Moratorium applies

  •  All Nationalised banks
  •  Private banks
  •  Cooperative banks 
  • Regional rural banks 
  • Non banking financial companies (Muthoot ,Mahindra Finance ,Bajaj, PNB ,HDFC)
  • Online banks(credit B,trust money)
  • Kudumbasree loans 
  • Gold loans 
  • Manappuram 
  •  Insurance EMI not included 

The banks have issued a guideline for this. At present only SBI has introduced this one. Other banks will bring to it the present in the coming days .

Without moratorium

loan                 EMI     Total

1 lakh             11000 × 10     110000

Interest  : 10000

With Moratorium 

1lakh                11000×13     113000 

estimated interest    : 13000

 Full amount and the interest  are not paid after 3 months . There are also those who are unable to pay interest on regular basis of months . The Moratorium would have been announced for them. After 3 months the interest of March should be settled. There is no way to say now whether banks will auto debit. 

         Leading online banking sestimoney has announced that bank auto debit has been stopped  . Please contact the bank for details. 


  •  If we don’t have money, do not pay for 3 months.
  •  Paying EMI is a profit if you have money .
  • Taking a Moratorium does not affect the credit score or debit score.


  •  They will charge interest on the loans for this three months.
  •  No clarification yet on how to pay it.

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