Quantify the exact financial impact of a loan moratorium. See additional interest burden, revised EMI, and extended tenure — fully compliant with RBI moratorium accounting guidelines.
RBI
Compliant
2+3
Moratorium Options
Moratorium Impact Analysis
A moratorium defers EMI payments but interest continues to accrue on outstanding balance. This calculator shows you the true cost in terms of extra interest and revised repayment.
Outstanding Loan Balance (₹) ₹20,00,000
Annual Interest Rate (%) 9%
Remaining Loan Tenure 15 Years
1 Year30 Years
Moratorium Duration
Impact Resolution
⚠️ Key Fact: Interest does NOT stop during moratorium. Interest accrues daily and is added to outstanding principal (capitalised). This creates a compound interest effect — you pay interest on interest during the moratorium period. The longer the moratorium, the higher the additional cost.
RBI Moratorium — How It Works
RBI allowed moratorium on all term loans from 1 March 2020 to 31 August 2020 (6 months) during COVID-19. Similar relief may be announced during future financial stress periods under Section 21 of the Banking Regulation Act.
Monthly Interest = Outstanding Balance × (Annual Rate / 12 / 100)
Accrued Interest = Σ Monthly Interest for each moratorium month
New Balance = Outstanding Balance + Accrued Interest
New EMI = calcEMI(New Balance, rate, remaining months)
Supreme Court Ruling (2020)
In SBI vs Bijay Shankar Chatterji (2021), the Supreme Court directed that compound interest (interest on interest) for moratorium period should be waived for loans up to ₹2 crore in specified categories. Banks were directed to credit back the difference between compound and simple interest.
Options After Moratorium
Higher EMI: Keep original tenure, pay higher EMI to cover accrued interest
Extended Tenure: Keep original EMI, extend loan tenure
Bullet Payment: Pay all accrued interest in one shot when moratorium ends