During moratorium, interest continues to accrue. Choose how you want to handle payments during this period.
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When facing financial stress, a loan moratorium can offer some breathing room. But taking a break from payments does not mean you stop paying interest. A Moratorium Calculator helps you know how much extra you’ll need to pay later. It shows the total added interest and your new EMI after the pause period ends.
What is a Loan Moratorium?
A moratorium is a period during which borrowers are not required to make EMI payments. However, the loan continues to earn interest in the background. Once the moratorium ends, the unpaid interest is added to your loan balance or adjusted in your EMI schedule.
How the Moratorium Calculator Helps
This tool gives a clear idea of what to expect financially after taking a moratorium. You just need to enter:
1. Outstanding loan amount
2. Annual interest rate
3. Remaining loan tenure
4. Number of months under moratorium
The calculator then shows the added interest during the moratorium period and your new monthly EMI or extended loan duration.
Example
Let’s say you have a loan of $10,000 with a 10% annual interest rate and 24 months left. If you take a 3-month moratorium, the calculator will estimate how much interest builds up during those months. It helps you plan your future payments in advance.
Why It Matters
Many people think skipping EMIs means saving money, but the interest keeps growing. If you’re not ready, the extra cost can surprise you later. The Moratorium Calculator gives you a clear picture, so you can make smarter financial choices.
Tips for Borrowers
If you can manage to pay during the moratorium, it’s better to do so. Even small payments toward the interest can reduce your future burden. But if you really need the break, knowing how much more you’ll pay in the end is important for budgeting.
Try the Moratorium Calculator Now
Don’t let surprise interest hurt your financial goals. Use the Moratorium Calculator to stay informed and in control. Whether you’re managing a home loan, personal loan, or car loan, this simple tool can help you handle your payments better and avoid future stress in $.