Moratorium Period (in Months) is the initial period during which principal repayment is deferred, and only interest may be payable depending on terms. It is common in project and term loans. Moratorium should align with cash-flow generation and implementation schedule. In MSME lending, it shapes how the facility is structured, priced, documented, disbursed and monitored after sanction. It should be reviewed with the borrower’s actual cash flows, existing exposure, repayment behaviour and the purpose for which the facility is being used. For example, a machinery loan may allow six months before principal repayment because the unit needs time to install equipment and start generating revenue. It matters because facility terms influence cash-flow burden, utilisation behaviour, approval authority, documentation and customer communication. The common caution is to verify the amount, tenor, repayment cycle, moratorium, security, renewal terms and approval conditions instead of reading the field in isolation.