Loan Moratorium Calculator
See exactly what a payment holiday adds to your loan before you agree to one.
A Moratorium Pauses Your EMI, Not Your Interest
Enter your outstanding balance and how long you want to skip. We show the interest that piles up, the higher EMI or the extra months that follow, and the total you end up repaying.
Understanding Loan Moratoriums
Why a Pause Costs So Much
Two separate things go wrong at once. First, interest still accrues on the whole balance for every month you skip. Second, because no principal is repaid in those months, the entire remaining amortisation is pushed back, so every later payment carries a bigger interest slice. That second effect is usually two to four times larger than the interest accrued during the pause itself.
Capitalised vs Deferred Interest
- Capitalised: accrued interest is folded into the principal, so from then on you pay interest on that interest. Cheapest on cash flow, dearest overall.
- Deferred: interest accrues simple and is collected as a separate lump sum or a short side loan. It hurts immediately but never compounds.
- Ask which one your lender applies before you sign. The wording is usually buried in the restructuring letter.
Same End Date or Same EMI?
Lenders usually offer to keep your EMI unchanged and simply add months to the tenure, because it is the easiest sell. It is also the most expensive outcome by a wide margin. If you can absorb a slightly higher instalment, insist that the original maturity date is preserved instead. On a mid-sized home loan that single choice often saves more than the entire interest accrued during the pause.
Before You Ask for One
- Check whether a partial EMI is allowed. Paying just the interest portion stops the balance from growing at all.
- Get the revised balance, EMI, tenure and end date in writing before accepting.
- Confirm how the pause will be reported to the credit bureaus.
- Ask about restructuring fees and whether prepayment later is free, so you can undo the damage once income recovers.