A good credit score is needed to avail a loan easily. In order to increase the credit score, it is necessary to pay the EMIs on time. Some of the lenders also offer EMI-free period to help borrowers easily pay the instalments thereafter. What is the Moratorium period? This is known as EMI-free period and is best to support debtors at the time of financial distress. Overall, this is a purposeful delay of the EMI at the initial months of the repaying period. The best part of Moratorium is that it helps a borrower to pay higher EMIs later on and acts as a cushion between the time of loan credit and the start of repayments.

One of the major differences between grace period and moratorium period is that the grace period begins after the completion of the loan term and payment is still pending. This is an interest-free period when a borrower can pay the outstanding money without receiving a notice of default. With this, it is clear that both the grace period and Moratorium period are important parts of the terms and conditions of any financial advance. Thus, as a borrower, it is necessary to know these terms as they will help to easily repay the loan as per financial capability.

Bajaj Finserv is now among the leading financial institutions that offer attractive loans with affordable EMIs and flexible repayment tenors. No matter what type of loan an individual requires it is easy to make use of the moratorium and grace period if required to repay the loan amount.