1. Offers some break in case of a financial emergency 2. You can stop your loan repayment during this period while you avert your funds for your essential needs 3. The bank will not report you as a defalcator to the credit bureau during the moratorium period. 4. Even if you don?t repay your loan, your credit score and credit history will not see an unfavorable impact. 5. This will help in the future when you need to take another loan with a good credit history