The Reserve Bank of India has announced that they are going to extend the moratorium period for the repayment of loans and credit card dues for the next three months starting from June till August 31st. This is done due to the pandemic outbreak COVID-19. People are helpless and are not able to earn due to which this step has been taken by the government.
The RBI Governor said- “In view of the extension of the lockdown and continuing disruptions on account of COVID-19, it has been decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from June 1 to August 31, 2020,”.
But there are few things that you should know before you take the benefit of the moratorium given by the government. So let us talk about those important things here.
1. The moratorium given by the government is just an extension period for you to pay your due loans back. It does not mean that your loans are cleared by the government. You still have to pay the loans after the moratorium ends.
2. You are going to not pay the bills till 3 months but you also have the pay the interest charges which will be payable on the outstanding loan of yours. So it is not going to be free for anyone.
3. You also will notice that you can not make any new payments using your credit cards till the time because it might be blocked from the issuer for some time.
4. You have to choose the moratorium as it is not a mandatory service. It is optional and you have to request your bank for the same. If you don’t, you will be payable to the EMI for the upcoming months.