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Is grant of moratorium a form of restructuring of loans?

Is grant of moratorium a form of restructuring of loans?

The moratorium/deferment will be provided specifically to allow the borrowers to tide on the fallout that is economic COVID-19. Ergo, similar won’t be addressed as change in conditions and terms of loan agreements as a result of difficulty that is financial of borrowers.

What is going to function as the affect the mortgage tenure plus the EMI due to the moratorium?

Effortlessly, it could add up to expansion of tenure. For instance, if a term loan had been awarded for a time period of three years on 1st Jan 2020, as well as the lender grants a 3 months’ moratorium, the tenure efficiently stands extended by three months – so that it becomes 39 months just how.

The lender will have to either increase the EMIs (that means, recompute the EMI on the accreted amount of outstanding principal for the remaining number of months), or change the last EMI so as to compensate for the accrual of interest during the period of the moratorium since there is an accrual of interest during the period of moratorium.