Moratorium interest

This query is : Open

Nitesh bind (Querist)
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06 March 2014 Dear Sir,

I have a very urgent query regarding the term "Moratorium Interest".

1. What is the meaning of moratorium interest?
2. When it is charged?
3. What is the difference between Moratorium Interest and Simple Interest?
4. Is it deductible under income tax act?

Please sir help me as soon as possible.
Waiting for the suggestion and explanations.

Thanks in advance...
Nitesh Bind.

Manish Gurudasani

Manish Gurudasani (Expert)
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06 March 2014 Moratorium Period is a holiday on repayment which would be for the course period + 1 year or 6 months after the student gets a job/start earning whichever is earlier. Some banks will also allow you a moratorium on payment of interest. This means that you can defer payments of even the interest...

Manish Gurudasani

Manish Gurudasani (Expert)
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06 March 2014 Interest would have to be paid during the moratorium, the interest servicing would be of simple interest calculated on the loan amount disbursed payable monthly. Some banks will also allow you a moratorium on payment of interest. This means that you can defer payments of even the interest during...

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