Business Loan Moratorium: Eligibility and How It Works

A business loan moratorium is a lender-approved pause on EMI repayment for a defined period, typically offered when a borrower faces a temporary disruption to business cash flow. During this period, the borrower is not required to pay the EMI, but the loan itself remains active, and interest continues to accrue on the outstanding principal. A moratorium is different from a loan waiver or settlement, since the full repayment obligation, including the deferred amount, still has to be met once the moratorium ends. It is granted only after the lender reviews the borrower's specific loan account and financial situation, and is not a standard feature available on every business loan by default.

Who may be eligible for a moratorium

Eligibility for a business loan moratorium depends on the lender's review of the loan account and the borrower's current situation, not on a fixed set of rules that apply uniformly. Factors that are typically considered include:

• The loan type and the terms agreed at disbursal
• The borrower's repayment history on the loan so far
• The nature and duration of the current financial disruption
• Whether the loan account is already overdue at the time of the request

A moratorium request does not guarantee approval, and each application is assessed individually by the lender. Loan restructuring is subject to your lender's assessment and approval. Eligibility criteria vary based on your loan type, repayment history, and current financial situation. Contact your lender directly to understand whether restructuring is available for your loan.

If a temporary business disruption is affecting your ability to meet scheduled EMIs, you can check whether a moratorium request is available for your loan. You can raise the request through the available Bajaj Finance channels, where it will be reviewed before any repayment relief is approved. 

Follow the steps:

1. Log in to the Bajaj Finance App or My Account portal using your registered mobile number and OTP/Customer ID.
2. Go to Menu Help and Support and Raise a Request.
3. Select your Business Loan Account and look for options such as EMI Hardship, Repayment Assistance, or Moratorium (where available).
4. Select the request type, describe the business disruption/financial difficulty, and upload relevant supporting documents (e.g., bank statements, financial records).
5. Submit the request and note down the Service Request Number for tracking.
6. Wait for official approval. Do not stop EMI payments until you receive a formal confirmation email/SMS with the updated schedule, as interest will continue to accrue during any paused period.

If you cannot find the moratorium option online, contact customer care or visit a branch to understand the available process. Until you receive formal confirmation of an approved moratorium and any revised repayment schedule, continue to follow your existing EMI schedule.

What changes during and after the moratorium period

During an approved moratorium, the EMI is deferred, but interest continues to accrue on the outstanding loan amount for that period. Once the moratorium ends, the deferred interest is usually added to the loan, which can result in a revised EMI, an extended tenure, or both, depending on the terms set by the lender. The table below summarises what typically changes across the three stages.

The terms of any restructuring arrangement, including revised EMI amount, tenure, and applicable charges, are determined by your lender at the time of assessment. No standard terms can be guaranteed in advance.

What happens if EMIs are missed without an approved moratorium

If an EMI is missed while a moratorium request is still pending, or without any request having been made, it is treated as a standard missed payment. This affects the borrower's CIBIL score and repayment history, and a bounce charge or late payment charge may apply as applicable to the loan account. Continued non-payment across subsequent months moves the account further into default, which can affect the borrower's ability to access credit from any lender in future, not only the current one. A moratorium only applies from the date it is formally approved, and does not cover EMIs that were already due before the approval. Borrowers anticipating a delay in payment should raise a moratorium request as early as possible, since waiting until after an EMI is missed does not reverse the impact already recorded on the loan account.