RBI gives 3 more months EMI moratorium extension
The RBI has again provided relief for those paying EMI of home loan, personal loan, vehicle loan. Now you can hold your EMI of June, July and August if you want. During the press conference today, RBI Governor Shaktikanta Das said that due to increased lockdown, the Morotarium and other relaxations are being extended for three months. Now the relief on EMI payment is being extended from 1 June to 31 August. That is, if you do not give the EMI of your loan for the next 3 months, then the bank will not put pressure for the same.
In fact, the RBI had to take this decision because the flow of people’s income has not been smooth again due to the continuation of the lockdown. People will not be able to repay their debt in the current situation after the EMI Moratorium’s current period ends till 31 May. So the moratorium had to be extended for another three months. This will be helpful for both borrowers and banks in these difficult times.
Who takes term loan
Term loan caters to people buying a house, buying a car or other needs. Such people take loans from banks to meet these needs. Small firms also often require loans to expand their business. One can take it for short or long term depending on their need.
What is Moratorium?
Moratorium is the period during which you do not have to pay EMI on the loan taken. This period is also known as EMI holiday. Such breaks are usually offered to help individuals experiencing temporary financial difficulties recover from it.
On March 27, the option was announced
The Reserve Bank of India (RBI) on 27 March had asked banks and financial institutions to provide a 3-month moratorium on payment of EMI to all the term loan borrowers by March 1, 2020. In this option, customers can hold their EMI for the months of March, April and May. However, interest will continue to be charged during these three months of EMI moratorium, which will have to be given later as additional EMI. Customers who do not want to hold their EMI do not need to do anything. Their EMI will continue to be cut as it was.
With this, now the repayment of all such loans was extended for three months. Under the moratorium, people did not take EMIs from their accounts for loans. EMI payments will start only after the end of the loan suspension period ends on 31 August following the Reserve Bank’s latest announcement.
