Loans and credit are various sources through which you can finance your short-term and long-term plans or goals. Rapid approval, easy documentation and elementary process of repayment are features one looks for when they avail a loan.

Moratorium period acts as a shield against any financial distress. This period begins after any loan has been fully disbursed to you. Understand the meaning of moratorium period in a home loan to utlise it judiciously. In case of construction delays for home loans, you can repay the debt after you get possession. Education loans often come with terms where you can start the repayment once you gain employment. You may even gain from an interest-free period.

Grace period is a feature prevalent with all types of loans but only as per the discretion of the management. The personal loan lenders gives you a grace period, usually of 20-25 days, wherein you need to clear the outstanding balance. Failing which, interest would be charged for non-repayment. It is a short period as compared to the previous one and mostly used by defaulters to repay their debt.

Do not divert from any terms and conditions of the lender and default would lead to a poor credit score. Your personal property might be mortgaged in case of non-repayment. Taking a loan, in case of one still pending, should be avoided. It is advisable that you check all documents and steer clear of any fraud.