•A loan moratorium allows a temporary pause in EMI payments, but interest continues to accrue on the outstanding amount.
•Unpaid interest during the moratorium period is added to the loan, leading to either extended tenure or higher EMIs later.
•Moratoriums offer liquidity relief in the present but almost always increase the total cost over the life of the loan.
•It is a useful tool for temporary income disruptions (job loss, business stall, medical emergency) to prevent default or premature liquidation of investments.
•Before opting for a moratorium, borrowers should request a revised amortization schedule to understand the full repayment impact.
