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Home > Forum > Chennai > Home Loan > Moratorium and Capitalization

Moratorium and Capitalization

Q: Hello..I want to take a loan from SBI and found these confusing in Loan Application Form? It says Moratorium on Home Loan and capitalisation of interest. Please can somebody throw light on these terms.

moratorium
capitalization
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As per my knowledge..Capitalization is the compound interest and Moratorium is a period from date of disbursement of loan, during which the borrower is not required to pay EMI but the outstanding continue to incur interest. For more information you should contact the banker.
Amreesh Murugan


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