The ongoing Coronavirus or COVID-19 crisis has shaken the entire world. This pandemic has created a health emergency in the world, including India. Not just health, but also the financial situation of individuals and businesses are stressed right now. There is going to be a huge and long impact on the Indian economy.
To mitigate the financial impact on people, the Reserve Bank of India (RBI) has recently announced relief measures for bank customers who are repaying retail loans or credit card bills.
According to its Statement on Developmental and Regulatory Policies on 27th March, 2020, RBI has allowed banks and financial institutions to offer a moratorium period of up to 6 months for all payments (including principal and interest) due between 01.03.2020 to 31.08.2020.
Home loan customers will also be able to get relief under these measures. The accumulated interest and principal on housing loans will be amortized over the entire period of the loan. As a result, there can be an increase in the existing EMIs or an extension of the remaining tenure of the loan.
A moratorium on a home loan means the housing loan borrowers can delay the payment of their EMI/Pre-EMI for a limited period as defined by the lending bank. The interest at the applicable rate of interest (fixed by the bank) will continue to accrue on the outstanding loan portion during the moratorium period.
For e.g., if HDFC Ltd. grants a moratorium of 6 months on home loans, and a customer opts for this benefit, then his EMIs for March, April, May, June, July and August 2020 will get suspended.
As per RBI’s announcement, HDFC Ltd. and other lending institutions have been allowed to provide a repayment moratorium of up to 6 months to their customers, on EMIs/Pre-EMIs due between 01.03.2020 and 31.08.2020. Hence, all housing and other retail loans that were disbursed on or before 29.02.2020 will be eligible for the moratorium. Interest will continue to accrue on the outstanding principal amount during the said moratorium period.
The moratorium is applicable on both principal and interest components on loans paid either through EMIs or Pre-EMIs by customers.
The moratorium of up to 6 months can be offered by HDFC Ltd and other lenders for all instalments due between 31.03.2020 and 31.08.2020.
No. No penal interest or late payment charges will be levied by the bank.
Yes. A moratorium is an option provided by HDFC Ltd. to its customers who are going through a financial/liquidity crunch during this crisis. Customers who want to carry on with their existing payment schedule can do so.
No. The postponement of your home loan EMIs/Pre-EMIs during the moratorium period of 6-months will not affect your credit score in any way. During the said moratorium period, non-receipt of EMIs/Pre-EMIs will not be reported to the credit bureaus as default.
The customer can opt for an extended tenure or increased EMIs, depending on their choice. You can discuss with the bank regarding all available options.
You can opt for a moratorium by visiting the bank’s website or clicking the link sent to you by the bank through email & SMS.
The interest will be charged at the interest rate applicable on your loan.
Updated On Jul 27, 2026
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Written By Priyanka JainContent WriterLoans & Credit Cards
Priyanka Jain is a seasoned Omni-channel content specialist, recognized as ‘top 50 content marketing professional-2019’ by World Marketing Congress, CMO. She is an enthusiastic personal finance blogger and writes actively on credit rating, loans, credit cards, insurance, and mutual funds. At MyMoneyMantra, she supports MMM’s core vision to simplify credit decisions and spread financial literacy.
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