When you opt for a home loan, generally, there is a time duration where you don’t have to make any repayment. This period is usually immediately after the loan gets disbursed to you. This period of time is known as a moratorium period where you can choose to not pay the loan for the specific time. This period is beneficial for planning out the EMIs and acquainted with the lengthy obligation of a home loan in a more organised manner.
In addition, you can also save some amount as a backup if you happen to change your job or a similar situation. You can also use this time to pay home-related expenses like stamp duty, registration and brokerage
Hi buddy. I availed of a home loan through the Kotak Bank last year. I found out about a term called the moratorium period. When I asked the bank official, she told me the meaning behind it and also the information regarding the maximum moratorium period for home loan. Here is a detailed explanation to help you understand the subject as well.
What is the Meaning of Moratorium in Home Loan?
Before I tell you the maximum moratorium period, let me brief you on its meaning. So, a moratorium period can be defined as a period during which the loan borrower isn’t required to make the EMI payments. This is just after the loan amount is disbursed by the lender. A break is given, after which you start to make your home loan EMI payments. You must be wondering about the purpose behind doing all this. This is done to assist you in the management of your finances. This gives you a considerable amount of time to plan your expenses to keep them in line with the home loan EMIs.Now, the moratorium period can differ based on the lender and the borrower. The Union Bank offers up to 48 months, while the Kotak Mahindra Bank offers a maximum of 24 months of moratorium period. You can check for your bank through their official website. I hope my answer helps you to know about the maximum duration of moratorium on home loan.Avail home loan at the best interest rates through NoBroker!Read MoreIs Home Loan Processing Fee Refundable?What is SBI Home Loan Processing Fee?
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What is moratorium period in home loan?
Mercy
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September 10, 2020
2020-09-10T15:21:48+00:00 2023-10-18T23:44:45+00:00Comment
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Home Loan
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