The decision to take a home loan for financing your home is a huge financial decision for all of us. It is usually the next step after connecting with flat promoters in Chennai and finding a place of your choice. But starting to repay the loan almost immediately isn’t always an option owing to our financial responsibilities and circumstances. Moreover, if your house is under construction and gets delayed, it will come in the way of your loan repayment. In such situations, availing of a home loan moratorium period will be beneficial for you if allowed by your lender.

So let’s understand the term moratorium period.

What is a moratorium period?

A period during which a borrower is not required to pay the EMIs against his or her home loan is known as a moratorium period. Hence, it means you are not required to start repaying your loan immediately after it gets sanctioned. You can opt for an EMI holiday after you complete the purchase of a house for sale in Ayanambakkam. Almost all money lenders offer this facility to their borrowers so that they can plan their finances better and get used to the long association of a home loan in a planned and organized manner.

How can I benefit from a moratorium period?

An EMI holiday or moratorium period is one of the best choices you can make at the time when you purchase a house with the help of flat promoters in Chennai. You can utilise this time to plan your expenses and income in order to pay your EMIs in the future. Some more aspects that would require your immediate attention are expenses of stamp duty, registration, brokerage or simply saving money for your next EMIs. In case you need to switch jobs, you can easily use the loan moratorium period to settle into your new job before you start repaying your home loan.

How to avail a moratorium against a home loan?

Let’s consider an example for better understanding. You have purchased a house on sale in Anna Nagar West after consulting with flat promoters in Chennai. And you have opted for a home loan from a lender. But the terms and conditions of your moratorium period will largely differ from one lender to another. If you are trying to avoid confusion and get the best option of a loan moratorium period, look for a lender who offers a good break during the beginning of your home loan tenor. You should also compare different home loan interest rates offered by different lenders. Many lenders often increase the interest rates right after the moratorium period gets over. Although this is most common for home loans with floating interest rates, you must always be careful while opting for a moratorium period in order to avoid unpleasant surprises in future.

 Conclusion

After deciding on a lender, you should also speak to them and clarify all your charges and the procedure involved in advance so your repayment terms are clear to you. By doing so, you will be ensuring a hassle-free and smooth repayment period even after availing of a moratorium period on your home loan.