EMI Holiday in 2025: What You Can (and Can’t) Expect

Last Updated : May 30, 2025, 6:29 p.m.

Wondering if you can take a break from paying your loan EMIs in 2025? Whether you're dealing with a home loan, personal loan, or education loan, the idea of an EMI holiday can sound like a huge relief - especially during financially tight months. But is an EMI holiday still available in 2025? Here’s the full picture of what’s available, which banks offer it, and what your options really are.

What is an EMI Holiday or Moratorium?

An EMI holiday is a temporary break from monthly loan payments (EMIs), usually allowed under special circumstances such as job loss, home construction, or during study periods for students. During this time, interest continues to accrue, but repayment is postponed.

Top Benefits of a Moratorium Period

If used wisely, an EMI holiday can offer several practical advantages:

Note: Although EMI holidays offer temporary financial relief, the interest that accrues during this period gets added to your loan amount, resulting in a higher overall repayment.

Is There an EMI Holiday in 2025?

Quick answer: No, there’s no official RBI EMI moratorium right now:

The last blanket EMI moratorium ended in 2020 during COVID, and the one-time loan restructuring options offered by RBI wrapped up by 2021 - 2022. But here’s the good news - some banks still offer flexible repayment features that work like an EMI holiday. You just have to know where to look.

Home Loans: Best EMI Holiday–Style Features in 2025

If you’re planning to buy a home or already have a loan, some banks offer flexible EMI structures that can ease your burden - especially in the first few years.

Here’s a quick snapshot:

• Compare home loan offers side by side here
• Pro Tip: If you're buying an under-construction property, look for “interest-only” or “pre-EMI” plans. They help reduce outflow until possession.

Personal & Travel Loans: Can You Get a Break?

Most personal loans don’t come with EMI break or EMI holiday options anymore. Since these are short-term unsecured loans, banks expect regular repayment. That said:

• You can request restructuring if you're facing a true hardship.
• You shouldn’t skip EMIs without approval - it’ll hurt your credit score .

What you can do:

• Extend your loan tenure to reduce EMIs.
• Use a balance transfer to shift to a lower interest rate.

Car Loans in 2025: Any EMI Breaks?

Like personal loans, car loans don’t typically offer formal EMI holidays. But you might still have options:

• Some lenders allow restructuring or refinance.
• You might be eligible for a top-up to manage cash flow.
• No bank currently offers a pre-approved EMI holiday for car loans .

Looking to reduce your EMIs? Consider a car loan balance transfer to a lower interest rate lender - A smart way to get indirect EMI relief without needing formal approval.

Education Loans: Moratoriums Still Exist

Most education loans still include a built-in moratorium. That means:

• No EMI payments during the course period.
• You usually get additional 6 - 12 months after graduation before EMIs start.
• But - interest keeps adding up during this period.

Tip: If possible, pay just the interest during the moratorium - it’ll reduce your EMIs significantly once repayment begins.

Business Loans & MSMEs: What's Still Available?

If you're a business owner or MSME, the structured EMI relief schemes from COVID days are long gone. But you can still:

• Restructure your loan by talking to your lender.
• Apply for top-up loans or working capital support depending on your credit profile.

Smart Ways to Ease EMI Pressure (Without an EMI Holiday)

Even if EMI holidays aren't widely available, you can still reduce your EMI burden with a few smart moves:

• Restructure or refinance your loan
• Extend the tenure to reduce monthly payments
• Use an EMI calculator to compare different repayment scenarios and choose the most suitable option.
• Stay on top of your credit score - it can affect your chances of getting relief.

Final Take: What to Do If You’re Struggling with EMIs

Even though there’s no official EMI holiday right now, you’re not out of options.

If you’re feeling the pinch:

• Talk to your lender early.
  
• Explore flexible loan products.
  
• Restructure or refinance - you might be surprised how much it helps.