If you have decided to not pay anything for next three months due to the covid-19 outbreak, then you might have to pay some higher interest on your outstanding loan and it is announced by the reserve bank of India.
Experts said that the simple interest rate will get calculate by the banks for the three month period in which the loan repayment was due but not paid due to the outbreak and issues going on in the world and it will get added in the EMI at the end of three month forbearance.
To keep it easy, let us understand it from an example. If you are deferring payment of EMI of INR 1000 and the bank charges the interest rate of 10 perent, you will have to pay INR 25 extra on each of the three months.
On this, the financial sector analyst said-“Whether the customers will have to pay this additional interest in one go or will be allowed to get it adjusted as additional EMI is something that needs to be clarified by banks,”
due to the breakdown, you will be given an exemption of three months for your loans which you have to pay later but after three months.
CBO and Co founder, Kunal Varma from MoneyTap said-“The 3-month EMI moratorium is a welcome move for those customers whose short-term cash flows are adversely affected by the coronavirus pandemic. This basically means that the customers may be allowed to defer their immediate EMI payments, but come June, they will have to resume the payments. It is not a waiver, but only a shift in payment schedules,”