A moratorium is a temporary suspension of loan repayments that a bank may grant to borrowers under specific conditions. It is not a waiver — the loan amount, and any interest that accrues, still has to be repaid, just later. India's only nationwide, blanket moratorium was the RBI's COVID-19 measure, which ran from March to August 2020. No equivalent economy-wide scheme has been announced since, and there is no standing rule that entitles a borrower to a moratorium outside a specific announced crisis.
What Is a Moratorium?
A moratorium lets borrowers postpone loan payments for a fixed period. It is typically a crisis-response measure — used during widespread economic disruption or natural disasters — rather than a routine option a borrower can request at any time. During the moratorium period, interest usually continues to accrue on the outstanding balance, so the total amount repayable over the life of the loan can end up higher, not lower.
How Did the COVID-19 Moratorium Work?
During the COVID-19 pandemic, the RBI announced a moratorium period from March 1 to August 31, 2020, covering term loans and working capital facilities across banks, NBFCs, and other regulated lenders. It was a one-time relief measure introduced through a specific RBI notification, not a recurring or ongoing facility. Interest continued accruing throughout the period, and borrowers had to repay the accumulated interest afterward — some lenders offered the option to convert it into a separate term loan.
Is a Moratorium Available Today?
No nationwide moratorium scheme is currently in effect. What remains is lender discretion: individual banks and NBFCs can choose, at their own policy's discretion, to offer a borrower options like a short payment deferment or loan restructuring — usually only case-by-case, following a formal request and the lender's own internal approval process. This is different from a moratorium being a right; it depends entirely on the specific lender agreeing to it for that specific account.
Does It Affect My CIBIL Score?
A moratorium only avoids credit score damage if it is formally approved and recorded by the lender before any payment is missed. An informal understanding, or an assumption that a lender will grant one, does not protect the account — if a payment is skipped without formal approval, it is reported as a missed payment like any other and can affect the CIBIL score in the usual way.
This is general information and not financial or legal advice for your specific circumstances.