Interest-Only Loan Calculator
See the payments during an interest-only moratorium, then the EMI that follows.
These calculators are provided for general informational and educational purposes only and do not constitute financial, tax, or legal advice. Results are estimates only. Please consult a qualified financial professional before making any financial decisions.
What is an Interest-Only Period?
During a moratorium or construction-linked plan, you pay only the interest accruing each month - the principal doesn't reduce. Once the moratorium ends, full EMIs (principal + interest) begin over the remaining tenure. It eases early cash flow, but costs more in total interest than starting full EMIs from day one.
Frequently Asked Questions
Why would anyone choose an interest-only period?
It lowers payments during a cash-tight stretch - like a construction-linked home loan or early-stage business - but the principal doesn't reduce during that period, so the loan costs more in total interest than starting full EMIs immediately.