What is a moratorium?

A moratorium is a deferment/postponement of your EMIs to a future date by paying monthly interest charges. Pursuing RBI relief measures due to the COVID-19 outbreak, LenDenClub has offered a moratorium to borrowers as their income may go down from March to August 2020. It will provide you relief from EMI payment for the selected tenure.

 

How many months’ moratorium is provided? Is there any additional cost involved?

You get an option to avail moratorium from March 2020 to August 2020 as announced by RBI. 

Under the moratorium option, you will pay moratorium charges, which include interest on the outstanding loan amount. The payable amount reflects in the Mobile app.

If you would not pay moratorium charges, interest will be applicable on moratorium charges. Hence paying the Moratorium fee is of utmost importance.    

 

How do I pay a Moratorium fee?

You can pay the moratorium fee from your InstaMoney app. You will have to click on “Pay Now” and with that, there are multiple payment modes available. You can choose as per your convenience and make the payment. You can also make the payment through Paytm: http://bit.ly/emipay

 

Will my credit score get affected due to the Moratorium?

No, by availing of the facility of Moratorium you are postponing your EMI and it will not be considered as a delay. There will be no delay reported in your CIBIL report. However, if you fail to pay EMI on a later date then it will be considered as a delay case and that might have an effect on your Credit Score.