# Quick Answer: How Is Moratorium Interest Calculated?

## How do you calculate interest in a moratorium period?

How to use moratorium EMI Calculator?Enter your loan amount.

Enter the Rate of Interest.

Enter the number of EMIs you had paid before Mar, 2020.Enter the number of months for which you had taken a moratorium between Mar – May, 2020.More items….

## What is an example of moratorium?

The definition of a moratorium is an authorized delay in an activity or obligation. An example of a moratorium is a deferment on the payback on loans. A suspension of an ongoing or planned activity.

## How do you pay moratorium amount?

Availed EMI moratorium? Here’s how you can repay the amountOne-time repayment. If the finances allow, the borrowers can make one-time repayment of the amount (that was availed during moratorium plus accrued interest) and then continue the loan as usual. … Increase EMI for remaining months. … Extend loan tenure. … Restructuring of loans.

## How is moratorium interest calculated with example?

Moratorium Calculation Example Using Formula Extra Interest for 1 month moratorium (Rs.) Extra Interest for 2 months moratorium (Rs.) Extra Interest for 3 months moratorium (Rs.) … The calculations are for illustrative purposes only and actual interest accrued may vary slightly based on the EMI payment due date.

## Is interest paid during moratorium period?

Synopsis. During the moratorium, borrower paid interest on the interest, or compound interest. This is because interest due every month got added to the total loan amount.

## How much interest is on a moratorium?

Outstanding Loan Amount at the beginning of moratorium30 Lakhs70 LakhsInterest for 6-month moratorium period- with simple interest (B)Rs. 1,12,500Rs. 2,62,500Net Savings due to waiver of interest on interest (C)=(A-B)Rs. 1772Rs. 4135% savings (C/A) *1001.6%1.6%2 more rows•Oct 28, 2020

## What is the process of moratorium?

All customers who desire to avail the relief under the policy can send an email from their registered mail id to help@idfcfirstbank.com , with your mobile number and loan account number And they will activate the moratorium for the unpaid EMI of March 2020 if any, and for EMI of April and May 2020.

## What is the moratorium period?

A moratorium period is a period during a loan term when the borrower is not obligated to make a payment. It is a waiting period before the borrower starts making fixed monthly payments.

## What happens after moratorium period?

You will need to catch up with loan repayments after the moratorium ends and interest will continue to accrue as usual. However, whether or not interest will be compounded is left to the respective banks to decide. Compound interest is interest that will be charged on interest.