MORATORIUM
The coronavirus pandemic has introduced us with many new terms which became part of our daily life for the past few months like containment zone, quarantine, sanitization, etc. Similarly moratorium period is the term which gained a buzz in the business world. Let’s dive deeper and gain an insight over what the moratorium period is, its features, advantages, disadvantages, etc.
WHAT DOES MORATORIUM MEAN?
According to the Cambridge Dictionary, moratorium means stopping of an activity for an agreed amount of time. Now, this is just the meaning of the word moratorium. Moving forward let’s see what the moratorium period actually is.
MORATORIUM PERIOD:
The moratorium period is a timestamp during which you are not obliged to pay the EMIs of your loan. Does it mean cancellation of the EMIs for the moratorium period? The answer is NO. The concept of the moratorium period is very simple. Imagine you took a loan of a certain amount from a bank for 15 months and you got a moratorium period of 3 months in this period. Now you can halt your EMIs for those 3 months and pay them after the 15th month of your total period. In short moratorium period indirectly extends your total period of loan repayment giving you a flexibility of not worrying about the EMI for the given moratorium period.
Moratorium Period: A temporary breakup with your EMIs. Although you cannot run away from them.
There are different benefits of the moratorium period:
- If availed during the initial phase of the loan, one gets an adequate amount of time to plan their finances and look into other matters which are of more urgency.
- If availed during the job switching period, one can be less stressed about the EMI payment and would not have to worry about the EMIs and concentrate more on other expenses.
- Moratorium period helps you to maintain your credit score which makes it easier to avail of another loan. Without a moratorium period if you fail to pay your EMI it affects your credit score negatively.
- During crises, pandemic, or any other natural calamity the moratorium period helps you to balance your expenditure without having to worry about the EMIs.
Drawbacks:
- A moratorium period of few months can increase the total period of loan repayment to a long extent.
- High interest is imposed if the moratorium period is availed.
- The interest rate may be higher compared to the usual interest rates on the loans increasing the amount of monthly EMIs.
RANSOMWARE
Cyberattacks are increasing at a higher rate. The more we are moving towards the digital arena the more is the increase in the rate of cyberattacks. Ransomware is a type of cyberattack which was first introduced in the year 2005. Ransomware is a cyberattack where the system which is being attacked kept as a hostage until and unless the requirements of the attackers are not fulfilled. To elaborate this lets take an example. Suppose you own a big company and have all your important data stored in your system. A small security breach in your system can give access to the cybercriminal to install the malicious code in your system. And once this code enters your system the cybercriminal can lock you system. You’ll lose access to your system and data. The cyber criminal can either lock your data or else can also destroy your data. The criminals ask for money in return to unlock your system. Some well known ransomwares are Wannacry, Petya, UHBVN Ransomware, etc.
How to prevent Ransomware?
- Keep your Operating System updated.
- Ensure less vulnerabilities or areas to exploit.
- Avoid installation of software or applications from not trusted sources.
- Install antivirus.
- Keep a backup of your data.
- Avoid clicking on suspicious links.
Sources:
- https://www.bajajfinserv.in/insights/what-is-the-meaning-of-moratorium-period-in-a-home-loan#;
- https://www.timesnownews.com/business-economy/personal-finance/loans/article/all-you-need-to-know-about-emi-moratorium-its-advantages-and-disadvantages/608181
- https://www.csoonline.com/article/3236183/what-is-ransomware-how-it-works-and-how-to-remove-it.html
- https://medium.com/delaney-hooks/what-is-ransomware-and-how-do-we-protect-against-it-8bac46086f04
–KHUSHBOO SINGH