Five Reasons Why You Should Not Be Opting For a Loan Moratorium

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• Five Reasons Why You Should Not Be Opting For a
  Loan Moratorium

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• EMI Moratorium What is it?
• It is a period during which the borrower is not
  obligated to pay EMI.
• Moratorium only postpones the EMI.

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• Why Avoid an EMI Moratorium on a Loan?

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• 1 It Comes at a Cost
• Borrowers must pay additional interest on missed
  EMIs.

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• 2 Increased Number of EMIs for Long Tenure Loans
• Accumulation of unpaid interest during moratorium
  increases the number of EMI to pay.

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• 3 Have a High Interest Rate Loan? Avoid
  Moratorium
• High interest rate will increase the financial
  burden.

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• 4 Impacts Creditworthiness
• Moratorium loans are reported as restructured on
  the credit report.
• The restructuring factor could be viewed
  negatively by lenders.

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• 5 Impacts Debt Raising Capacity
• A lender may be hesitant to grant a loan if you
  chose a moratorium in the past.

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• Conclusion
• Remember the 5 reasons to not opt for a
  moratorium and only go for it if you are facing
  extreme financial difficulty.

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• Know more- Five Reasons Why You Should Not Be
  Opting For a Loan Moratorium