What is Moratorium Period (Education Loan)?
Meaning, Full Form & Guide (2026)
Quick Definition
The moratorium period is the loan repayment holiday provided to education loan borrowers during the course duration plus 6–12 months after course completion. During moratorium, no EMI payment is required — though interest may accrue (simple or compound depending on the lender).
Moratorium Period (Education Loan) — Full Explanation
Indian lenders: SBI gives moratorium of course duration + 1 year. HDFC Credila and Avanse typically offer 6-month post-study moratorium. Interest during moratorium: simple interest accrues (must be paid during moratorium to avoid compound interest at EMI start). RBI mandates basic moratorium protections.
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