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interest during moratorium period of a loan

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DEAR ALL,

I WOULD LIKE TO KNOW HOW INTEREST DURING MORATORIUM PERIOD IS TREATED BY BANKS AND FINANACIAL INSTITUTIONS WHILE FINANCING A PROJECT. HOW IT IS CONSIDERED IN THE PROJECT REPORT?IS INTEREST PAYABLE DURING MORATORIUM PERIOD?OR IS THE ACCRUED INTEREST ADDED TO NORMA L INTEREST AFTER THE MORA TORIUM PERIOD IS OVER?

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Interest due is required to be paid during Moratorium period. It means banks charge interest as per their regular criteria of charging interest.   Different projects have different moratorium period. An electricity project will definitely have more moratorium period than a loan given to another type of project which is likely to commence its business activities within a short period say six months. 


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