The Amortization Schedule is the backbone of any loan, detailing every payment over the loan's life, showing how the EMI is split between Principal Repayment and Interest Paid. This is a critical tool for bankers and borrowers alike to track the loan balance and interest accrual accurately.
The moratorium (or holiday) period is a key concept in project finance and education loans. During this period, the borrower typically does not pay the EMI. However, interest continues to accrue (simple interest) and is added to the principal balance (capitalized) at the end of the moratorium. This capitalized amount becomes the new principal for calculating the EMI for the remaining tenure. Our calculator factors in this capitalization to provide a truly accurate schedule.
Use the BankWiser Pro Amortization Schedule Calculator to quickly and accurately forecast your loan liabilities, including the impact of any moratorium period on your final loan principal and total interest burden.
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.
The moratorium period is a time during the loan term when the borrower is not required to make EMI payments. However, interest continues to accrue during this period and is typically capitalized—added to the principal loan amount—at the end of the moratorium.
In an amortization schedule, each EMI payment consists of two components: interest and principal. Initially, the interest component is high, and the principal component is low. As the loan matures, the interest portion decreases while the principal portion increases, even though the EMI amount remains constant.