Options for Cancelling a Moratorium Request and Resuming EMI Payments

As a borrower, you have the flexibility to cancel a moratorium request and resume paying your Equated Monthly Installment (EMI). However, the specific procedures and potential implications vary based on your lender's policies and the terms of your loan agreement. This article provides a comprehensive guide to help you navigate through the process.

Contact Your Lender to Cancel Moratorium

The first step in canceling a moratorium is to contact your bank or financial institution immediately. This is crucial to ensure you can resume making your regular EMI payments.

Follow Specific Procedures

Your lender might have specific procedures for canceling a moratorium. These procedures could involve submitting a formal request or filling out a specific form. Ensure that you comply with these procedures to avoid any inconvenience.

Understand Any Associated Fees or Penalties

It is essential to check if there are any associated fees or penalties for canceling the moratorium. Similarly, resuming payments might affect your loan terms. Understanding these implications can help you make an informed decision.

Review and Adjust Your Payment Schedule

Resuming payments may lead to adjustments in your loan repayment schedule, including any modifications to your EMI amount or tenure. It is crucial to review these changes to ensure they align with your financial capacity.

Obtain Written Confirmation

After submitting your request to cancel the moratorium, it is advisable to obtain written confirmation from your lender. This confirmation can serve as a record of the cancellation and prevent any misunderstandings later.

Personal Experience: A Case with PNB Housing Finance

Many individuals face situations where they encounter issues with their lender, such as PNB Housing Finance, when trying to cancel a moratorium. A borrower trying to cancel a moratorium with PNB Housing Finance was informed that it is impossible, without any explanation. Such experiences can be frustrating, especially when the lender does not consider the customer's needs.

The customer stated, I asked PNB Housing Finance to cancel the moratorium, but was told that they cannot do so. No reasons were given. It seems that PNB Housing Finance prioritizes their own rules and procedures over their customers' needs.

It is important to understand that while some lenders have strict policies, others may be more flexible. The borrower's statement highlights the need to clarify all details with the lender to avoid any misunderstandings. However, if the lender does not allow the cancellation, it is crucial to seek legal advice or contact customer service for further guidance.

Considerations for Resuming Payments

Even if you are unable to cancel the moratorium, it is advisable to opt out of the relief if you can continue to pay your EMI without significant difficulty. Refusing to do so could result in long-term consequences.

In cases of home loans, continuing under a moratorium might result in paying 16 EMIs instead of 3 that were availed initially. This long-term impact is significant and should be considered when making decisions.

To ensure a smooth transition and understand the specific requirements, the borrower can refer to the procedure link for their lender.