It's important to understand that a moratorium isn't loan forgiveness. Interest generally continues to accrue during the paused period (for most loan types), meaning the total amount you owe increases even though you're not making payments, and this accumulated interest is usually added to the principal once regular payments resume — extending your effective loan tenure or increasing future EMIs.
Because of this compounding effect, a moratorium is best treated as a genuine last resort during real hardship, not a convenient way to free up cash flow for discretionary spending. Taking one when it isn't truly necessary can end up costing considerably more in total interest than simply managing through a tighter month or two.
If you're considering requesting a moratorium, it's worth asking your lender exactly how the paused interest will be handled — whether it's added as a lump sum, spread across remaining EMIs, or extends the tenure — since these have different long-term cost implications and lenders don't always volunteer this detail upfront.