Home Loan Moratorium Period: What is it and its Importance
Monday, April 6, 2020 IST
Highlights
--Moratorium period is also known as an EMI holiday period
--Plan your finances & EMI outflow during the moratorium
--Get 3-EMI holiday on a Bajaj Finserv Home Loan
--Check home loan terms post the moratorium period
Taking a home loan to finance your home purchase is a big financial step. However, starting off with the repayment almost immediately is not always a feasible option owing to your other monetary responsibilities. Additionally, you may want to defer your home loan repayment in case you see that there is a construction-related delay on the project you are investing in. In these situations, you can take the benefit of the
moratorium period on your home loan allowed by your lender.
What is a moratorium period?
A moratorium period is basically a length of time during which you enjoy a holiday from your home loan EMIs. This means that you do not have to start repaying your home loan as soon as your loan gets disbursed to you. Instead you can avail an EMI holiday and begin paying EMIs after a break. Lenders offer this facility to help you plan your finances better, such that you get acquainted with the lengthy obligation of a home loan in a more organised manner. Bajaj Finserv, for example, grants 3-EMI holiday on a
Home Loan of up to Rs.10 crore.
What are the benefits of a moratorium period?
Having an EMI holiday or a moratorium period at the start of your home loan gives you ample time to plan your finances. During this time, you can plan your income and expenditure to take your home loan EMIs into consideration. You can use the time to pay for other home-related expenses such as paying for stamp duty, registration and brokerage or simply to save money for your subsequent EMIs. Additionally, a moratorium period benefits you by providing you enough time to switch jobs or fund the immediate expenses you incur after shifting into your new home.
Now that you know about an EMI holiday or a moratorium period, see how you can avail this break on your home loan.
How to Avail a Moratorium on your Home Loan
The terms and conditions for the moratorium period on your home loan can vary across lenders. In order to avoid confusion and make the best choice, look for lenders that offer a good break during the initial years of the home loan tenor. Remember to compare home loan interest rates carefully, as many lenders, in order to make up for this break, may increase the interest rate once the holiday period is over. This happens mostly with home loans sanctioned on floating interest rates. Calculate how your EMIs are affected by using this
EMI holiday calculator.
Once you have decided on your lender, speak to them regarding your needs and clarify all other charges and procedures in advance to ensure you get easy repayment terms through the entire tenor, even after the EMI break.
Another way to enjoy paying lower EMIs apart from availing a moratorium is to opt for a variant such as a Flexi Hybrid Home Loan where you pay interest-only EMIs in the first few years (up to 4 years) of your home loan tenor. This also helps you adjust to EMIs conveniently and begin paying full EMIs once your income also increases.
Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your
pre-approved offer.
Need instant financing? Think it. Done with Bajaj Finserv.
Related Topics
Related News & Articles
Highlights
--Moratorium period is also known as an EMI holiday period
-...
Recently posted . 932 views . 4 min read
Trending News & Articles
Animals keeping other animals as pets? Yes, you have read it right. Adding to the list of unlikely friends, we bring you a wonderful codependent relationship betwee...
Recently posted . 1K views . 1 min read
This is how the professionals get trapped into SISI - Single Income, Single Identity A "mouse" was put at the top of a jar filled with grains ...
Recently posted . 1K views . 4 min read
“Our ancestors built and lived in homes that served all their needs. These houses were well ventilated while we need ACs now. Almost three generations would...
Recently posted . 1K views . 1 min read
Simple tips to help you design your kitchen on a budget while avoiding any structural changes.
Recently posted . 941 views . 0 min read
More in Others
The family of the former teen who died in 2013 revealed that the red wallet contained photographs from the 50s, 26 cents, and a pink lipstick among other items.
Recently posted. 563 views . 1 min read
A rare happening was captured on camera at the Kruger National Park in South Africa, when a male baboon was seen carrying a lion cub.
Recently posted. 500 views . 0 min read
The image was clicked by photographer Rodrigo Kunstmann.
Recently posted. 607 views . 0 min read
Recently posted . 611 views
Recently posted . 711 views
Recently posted . 1K views
Recently posted . 1K views
TikTok influencers are known to do ‘out-of-the-box’ videos to gain instant publicity but will you think of the dirtiest thing ever to just make some qui...
Recently posted. 909 views . 3 min read
250 delicious organic watermelons in just 4X4 square metres. Nitesh spent only Rs 4,000 to grow them and earned more than Rs 30,000 on selling them! #FarmersFirst...
Recently posted. 787 views . 1 min read