Ever since the lockdown increased, there were speculations that RBI could increase the facility of postponement of EMI payments (moratorium). According to the expectation, the Central Reserve Bank has once again extended this facility to 31 August. Let’s know the answers to some important questions related to this decision of RBI.
Corona crisis and lockdown have affected many jobs and salaries. Many companies have also laid-off employees. The business sector has been affected the most due to this epidemic. In such a situation, many people are unable to pay EMI of their car due to this crisis. If you are not able to give your EMI, then there is nothing to worry, the bank will not take action against you.
This can only happen when you apply for a three-month loan moratorium granted by the Reserve Bank of India (RBI). If you are unable to pay the instalments of April and you are not in a position to pay the instalments of May (this month), then you can take advantage of this facility given by the government. & Nubs; Banks have been ordered that They allow customers not to pay instalments for three months from March to May.
However, the interest that applies to you during this time period is required to be filled with the instalment after the moratorium period ends. This means that the EMI of your car loan is not waived, only due to lockdown. Its duration has been extended.
Significantly, as the period of lockdown increases, the condition of debt holders in the country is also deteriorating. Many borrowers have so far applied to the RBI’s Moratorium facility since the lockdown that began in the last week of March.
What Does The RBI Announcement Mean?
Answer – The Central Reserve Bank has once again extended the facility of postponing the EMI of the loan (moratorium). This means that you can avoid paying monthly instalment (EMI) of personal, auto, home, business loan or credit card for a total of 6 m
Let us tell you that on March 27, the RBI for the first time had asked banks to postpone EMI payments i.e. Moratorium. After this, banks have given an exemption to postpone EMI payments to their customers for 3 months. But now this debate has been extended for an additional 3 months i.e. till 31 August.
What Should You Do Now?
Answer –If you are already taking advantage of Moratorium facility then gets it extended for an additional three months. At the same time, if you want to join this facility now, then contact your bank.
Is It Right To Avail Emi Moratorium Facility?
In the Corona crisis, there are many people whose jobs have been lost or salary has been cut. Apart from this, some people have taken loans for that business, which is now stalled. Such people can avail the facility of EMI Moratorium. Through this, you can get rid of the immediate scarcity of money by postponing your monthly instalment. But those who have not made a difference in their income, they should pay their EMIs on time.
Will, There Be An Advantage Or Disadvantage If Emi Moratorium Facility?
Answer –If you are taking the facility of EMI Moratorium then you definitely need immediate relief. But in the long term, you will have to pay an additional cost of this as an interest. Actually, interest will be added on whatever is outstanding during the deferment period. This means that the increased interest will be charged from you through additional EMI.
How Much Loss Will I Have?
Answer –You will have to pay an additional amount by availing EMI Moratorium facility. If you have taken a home loan of 30 lakh rupees from SBI and the repayment period is 15 years left. In such a situation, if you choose the option of 3 months deferment, then you will have to pay additional interest of Rs 2.34 lakh, which is equal to 8 EMIs. Similarly, you have taken a car loan of Rs 6 lakh and you have to pay an additional interest of Rs 19,000, which is equivalent to 1.5 additional EMI if you have 54 months left to repay it.
So Will This Extra Amount Have To Be Paid Together?
Answer – No, with the facility of EMI The moratorium, banks are also offering some options to customers. The first option is for those customers who have been availing this facility since March, such customers can pay a lump sum of interest which is generated in June if they do not pay the instalment in the moratorium period.
At the same time, there is an option that whatever interest is created during this time, it should be added to the remaining amount of the loan. And it should be divided equally among the remaining EMIs. This will increase your EMI but there will be no change in the loan repayment period.
Another option is to keep the EMI fixed and extend the loan period. Suppose you have to give EMI of your loan for 12 years, then you can extend this period. EMI will remain stable during this period, but after the end of the loan period, you will have to pay an instalment in the additional months also.
What Should I Do If I Do Not Want This Facility?
Answer – In such a situation, in general, let the EMI be cut as before. As per the news If for some reason your EMI is not deducted, then contact the bank and ask for the reason. As we know If you want to avail EMI Moratorium facility then you have to contact your bank. Apart from this, help can also be taken through the bank’s website, social media platform. Let us tell you that banks will provide the facility of EMI Moratorium only when the customer’s permission.
Due to this, customers of banks have got relief in giving EMI of home loan, auto loan etc. during these 3 months. Apart from this, if a business is unable to repay the EMI of the loan on the working capital, then it will not be considered a default. If these EMIs are not paid even during these 3 months then there will be no difference in the credit history.
State Bank of India (SBI)
The country’s largest bank said on Twitter that it is taking steps to postpone interest or EMI instalments on term loans coming between 1 March 2020 and 31 May 2020.