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moratorium period

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(Querist)
05 October 2010 What is the moratorium period ?
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CA Suraj Lakhotia

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CA Suraj Lakhotia (Expert)
05 October 2010 This term is used in case of loans borrowed. During this period the borrower is not required to repay principal or interest on the loan taken. Moratorium period is given usually when the project for which loan is sanctioned does not yield immediate returns.

Interest will be charged to the account but repayment will start only after the moratorium period is over.
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