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Five Reasons Why You Should Not Be Opting For a Loan Moratorium

If you think opting for a loan moratorium will make your repayment schedule easy, think again! Here are 5 reasons to avoid it unless absolutely essential.

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Five Reasons Why You Should Not Be Opting For a Loan Moratorium

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  1. Five Reasons Why You Should Not Be Opting For a Loan Moratorium

  2. EMI Moratorium – What is it? • It is a period during which the borrower is not obligated to pay EMI. • Moratorium only postpones the EMI.

  3. Why Avoid an EMI Moratorium on a Loan?

  4. #1 It Comes at a Cost Borrowers must pay additional interest on missed EMIs.

  5. #2 Increased Number of EMIs for Long Tenure Loans Accumulation of unpaid interest during moratorium increases the number of EMI to pay.

  6. #3 Have a High Interest Rate Loan? Avoid Moratorium High interest rate will increase the financial burden.

  7. #4 Impacts Creditworthiness • Moratorium loans are reported as restructured on the credit report. • The restructuring factor could be viewed negatively by lenders.

  8. #5 Impacts Debt Raising Capacity A lender may be hesitant to grant a loan if you chose a moratorium in the past.

  9. Conclusion Remember the 5 reasons to not opt for a moratorium and only go for it if you are facing extreme financial difficulty.

  10. Thank You !Would Love to Hear From You Hero FinCorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel. 18001024145 Email Id: customer.care@herofincorp.com Website: https://www.herofincorp.com/ Know more- Five Reasons Why You Should Not Be Opting For a Loan Moratorium

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