Interest During Moratorium

Yes, interest continues to accrue during a moratorium period. This is standard practice under RBI guidelines.

How it works:

• Simple interest accrues at your existing loan interest rate during the pause
• The accrued interest is added to your outstanding principal balance at the end of the moratorium
• Your EMI amount after the moratorium may increase slightly to cover this additional interest
• Alternatively, your loan tenure may be extended to keep the EMI amount the same

Example for a 3-month moratorium on a Rs. 4,38,200 balance at 10.5% interest:

• Approximate interest accrued: Rs. 11,500
• This amount is added to the outstanding balance when payments resume