How moratorium and repayments work
What a grace period means for your monthly instalment, explained with the repayment calculator.
A moratorium is a grace period at the start of your loan when you make no repayments. It gives a new investment — stock, equipment, a planting season — time to start earning.
Interest still runs during the moratorium and is added to the amount you owe (it is capitalised). Your equal monthly instalments start the month after the moratorium ends.
Repayments are calculated on a reducing balance: each instalment pays the interest due that month and reduces what you owe, so the interest part shrinks over time.
Try different amounts, tenors and moratorium lengths in the repayment calculator to see how each choice changes your monthly instalment and the total you repay.