Due to the coronavirus outbreak, the reserve bank of India has already put the moratorium on all the EMI for all kind of loans. And for the same, banks have started sharing the details and how they are going to do it with their customers. For anyone who is going through a liquidity issue, this can make it easier for them.
However, if you will not pay the money during these three months of moratorium, the unpaid amount will get added into your loan balance and you will be getting a revised balance for your dues. It can be a difficult situation for all of them who are already paying high interest to their loan as the interest will be added and you will end up paying a higher amount of interest.
Banks will be giving many ways through which you can manage paying the amount in easy steps. They will merge the amount in the other EMI equally or may also increase the time period.
To keep it simple, let us understand it with an example. Let say if you have taken INR 50 lakh at 9% for the period of 25 years and your EMI per month is INR 41,959. now since you are not paying for two months, the interest will be INR 74,441. and it will be added in your loan balance. Hence, it is better if you pay the dues upfront so that you don’t have to pay these high interest amount.