If I opt for a moratorium, will I have to pay extra charges? There are no extra charges for availing the moratorium, however interest at the existing rate will be continue to be charged on the outstanding principal amount for the moratorium period, which will keep getting accrued.
Moreover, how do you repay a moratorium loan?
Borrowers who had the option to opt for this moratorium are now required to repay it. The repayment can be done either in lump-sum amount or borrowers can ask lenders to add these to their outstanding loan and increase the EMI for the remaining months.
Likewise, how is HDFC moratorium interest calculated?
Note: * Extra interest incurred during the moratorium period of 3 months = 4000 (Month 1 interest) + 4040 (Month 2 interest) + 4080 (Month 3 interest) = Rs. 12,120.
How is interest calculated in moratorium period?
How to use the moratorium EMI Calculator?
- Enter your loan amount. …
- Enter the Rate of Interest. …
- Enter your loan tenure. …
- Enter the number of EMIs you have already paid.
- Enter the number of months for which you would had taken the moratorium facility between Mar – May, 2020.
HDFC Bank has announced that it has extended the moratorium on all term loans like auto loans, personal loans and home loans, as well as on credit card dues.
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.
It reduces your financial stress and gives you a breathing space to plan your finances better. You can use the moratorium period to plan your monthly income and expenditure to repay your EMIs. During this period, you can save funds for subsequent EMIs or pay for other expenses.
How is EMI calculated? The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n – 1) where P= Loan amount, r= interest rate, n=tenure in number of months.