Job Loss and Loan EMIs: Is Moratorium the Right Move? Here's What to Know

When financial troubles hit, be it a job loss or a medical emergency a loan moratorium can offer much-needed breathing room. But while it may pause your EMIs for a few months, it’s important to remember: this isn’t free money. It’s only a delay, and interest never takes a break.

What Is a Loan Moratorium?

A loan moratorium is not a free pass, it’s a pause button. Banks may allow borrowers to temporarily stop paying EMIs if they’re hit by unforeseen hardships. But interest doesn’t stop. It keeps ticking, silently adding to your debt.

Not a Waiver, Just a Delay

Let’s be clear: your dues aren’t being waived, they’re just postponed. The relief is real in the short term, but expect either a longer loan tenure or a bump in your EMIs later. For some, that means a heavier financial load down the road.

Who Can Apply?

Lenders don’t hand out moratoriums automatically. You must apply and justify the need with documents, hospital bills, termination letters, or salary slips. Your account should be in good standing (typically not overdue by more than 90 days), and approval is strictly case-by-case.