BANKING AFFAIRS

Detailed explanation-1: -A moratorium period is a period during which the borrower is not obligated to make payments. In other words, during a moratorium period, the borrower is permitted to halt their payments. It is commonly incorporated in home loans – called an equated monthly installments holiday – and educational loans.

Detailed explanation-2: -A moratorium period is a duration when the borrower doesn’t have to make the home loan EMI payments. 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 of an EMI holiday and begin paying EMIs after a break.

Detailed explanation-3: -A moratorium period, which is similar to forbearance or deferment, is when your lender allows you to stop making payments for a specific period of time and for a specific reason. Usually, the reason involves some kind of financial hardship.

Detailed explanation-4: -A moratorium is a temporary suspension of an activity or law until future consideration warrants lifting the suspension, such as if and when the issues that led to moratorium have been resolved. A moratorium may be imposed by a government, by regulators, or by a business.

Detailed explanation-5: -A moratorium period defines a delay in an activity when an unforeseen situation arises. Such a period remains in force until the conditions return to normal times. For example, in bankruptcy law, a loan moratorium allows debtors to suspend the legal obligation of repayment of loans.