If you were not sure how will you pay the EMI of the car loan, personal loan or the home loan, then you really have a good news that all these EMI will not be deducted for three months till 31st May, 2020 due to coronavirus outbreak.
The Reserve bank of India has asked all the financial institutions including the banks to impose a moratorium on outstanding term loans. For those who don’t know, it is a period during which you need not to pay any EMI for any loan you have taken irrespective of the type of loan.
The executive director and CFO of Federal bank said- The moratorium will be made available to all eligible borrowers. It will depend on whether the borrower wants to avail it or not.
Founder and CEO of Switchme, Aditya Mishra said- “Moratorium means that there won’t be any penal interest or impairment to credit history. But the interest for the period of moratorium will be added to the principal.”
“Therefore, after the moratorium is over, you will have to pay the outstanding amount, which will also include the interest levied for three months,”