Loan Moratorium

A moratorium can be built into a loan from the start (a construction-linked home loan often has one before the property is ready) or granted later as a temporary relief measure during genuine financial hardship. The key detail people often miss: interest generally continues accruing during a moratorium even though no EMI is due - so at the end of the pause, the outstanding balance is typically higher than when the moratorium began, and EMIs resume against that larger balance (or the tenure extends) rather than the pause being a genuine reduction in what's owed.