What Is an EMI Holiday and Can You Ask for One?

EMI Holiday - Real Break or Myth?

A temporary pause on loan EMIs is possible, but it comes at a cost.

A moratorium gives you extra time to manage finances without being considered in default.

What Is a Moratorium Period?

No. Interest Keeps Running and continues to accrue on the outstanding loan balance throughout the entire moratorium period.

Does Interest Stop Too?

A moratorium is not a borrower's right; it remains purely at the lender's discretion whether to offer one.

It's a Lender's Call, Not Yours

Construction period deferment for home loans and education loan holidays are the most common structured moratorium types available today.

When Is It Commonly Offered?

As per RBI guidelines, all lenders must provide a moratorium on education loans covering the course duration plus up to 12 months after completion.

Education Loans Have It Built In

Opting for a moratorium will result in either a higher EMI amount or an extended loan tenure once repayments resume.

Your EMI or Tenure Will Rise

When a lender formally approves the moratorium, missed payments during that period are not reported, and your credit history remains intact.

Will It Hurt Your CIBIL Score?

Always get formal lender approval in writing before skipping any scheduled installment payment.

Request It Before Missing EMIs

An EMI holiday offers short-term relief; understand the full cost before opting in.

Breathe Easy - But Plan Ahead

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