Should I take moratorium?

The covid-19 moratorium offered by lenders looks enticing but could add a significant burden to your interest.

Avail of it only if you are not able to pay your loan EMIs

A few points need to be noted. First, this is not an EMI holiday, but a deferment. This means EMIs need to be paid after three months and interest will continue to accrue. Second, lending institutions may decide to either give it to all the customers or only if the customer asks for it. Borrowers need to check the policy of their lenders since some are planning to give this benefit only to non-salaried customers.

Avail of the moratorium only if you are not able to pay your loan EMIs as your loan will not only get extended but there would be extra interest to be paid overall. Don’t use this benefit for credit card outstanding as the interest that would be charged in the range of 36-42% per annum, and purchases made during the next two months will also attract interest. 

Keep in mind that this is a postponement and not a waiver.