The education loan moratorium
A period covering the course plus six to twelve months, during which repayment is deferred. It matches repayment to the point at which the student starts earning, which is the entire logic of the product.
What it means
A period covering the course plus six to twelve months, during which repayment is deferred.
Why it matters to a household
It matches repayment to the point at which the student starts earning, which is the entire logic of the product.
Where it trips people up
Assuming interest is waived. It usually accrues and capitalises, so the balance at the end of the moratorium exceeds the amount sanctioned.
In an Indian household
Paying simple interest during the course, if the family can manage it, avoids that capitalisation and reduces the eventual EMI noticeably.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
The education loan moratorium
A period covering the course plus six to twelve months, during which repayment is deferred.
Why does it matter?
It matches repayment to the point at which the student starts earning, which is the entire logic of the product.
What do people usually get wrong?
Assuming interest is waived. It usually accrues and capitalises, so the balance at the end of the moratorium exceeds the amount sanctioned.
Is there anything India-specific?
Paying simple interest during the course, if the family can manage it, avoids that capitalisation and reduces the eventual EMI noticeably.