GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Moratorium
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Subvention
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Amortization
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None of the above
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Detailed explanation-1: -The interest rate charged during the moratorium is charged quarterly or half yearly on simple interest basis.
Detailed explanation-2: -Moratorium period is simply the period in any loan in which the borrower gets a break from making the Equated Monthly Instalment or EMI payments. It is often referred to as an ‘EMI holiday’ since there is no pressure of paying the monthly loan instalments during this period.
Detailed explanation-3: -So, the loan can be repaid whenever the student completes the course and begins to make money from their work. This gap in the loan tenure during which the borrower does not have to pay anything is known as the moratorium period. The moratorium in student loans can vary depending on the amount of loan taken.