3 Months Moratorium on EMI payments and other Loans says RBI
The novel Coronavirus pandemic has thrown the economy for a toss and the 21 days nationwide lockdown had many people worried how they would pay off their loans. Providing some much-needed relief, the RBI (Reserve Bank of India) has decided to delay payment on term loans for the next 3 months.
The move allows borrowers to not pay any equated monthly installments or EMIs for any loans until 30th June. This will bring relief to all borrowers, including those who have home loans, auto loans, education loans, agricultural term loans, retail and crop loans to their names. It will also be applicable on credit card dues.
The reprieve will be available for loans taken from any financial institution for all loans outstanding as of 1st March 2020.
In addition, the RBI has clarified that the rescheduling of payments will not qualify as a default and there will be no risk of the account being classified as a non-performing asset. This means non-payment of EMIs for the next 3 months will not adversely impact the credit history of the beneficiaries.
The central bank in its statement said, “All commercial banks (including regional rural banks, small finance banks, and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) are being permitted to allow a moratorium of 3 months on payment of installments in respect of all term loans outstanding as on 1st March 2020.”
“Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, maybe shifted across the board by 3 months,” added by the regulator.
A notification given later clarified that interest will continue to accrue on the outstanding portion of the loans during the moratorium period.
RBI notification said that the Instalments will include the following payments falling due from 1st March 2020 to 31st May 2020:
(i) Principal and/or Interest Components
(ii) Bullet Repayments
(iii) Equated Monthly Instalments
(iv) Credit Card Dues.
What does moratorium on loan mean?
The period of time during which you do not have to pay an EMI on the loan taken is called a moratorium. This period is also known as the EMI holiday. Usually, such breaks are offered to help individuals facing temporary financial difficulties to plan their finances better.
As of January-end, over Rs 13 lakh crore of housing loans and Rs 2 lakh crore of auto loans were outstanding, data with the Reserve bank of India shows.
Besides retail borrowers, micro, small and medium enterprises, and large companies will also benefit from the RBI’s relaxation of loan repayment.
Total non-food credit outstanding across all sectors like industry, services, agriculture, and personal loans was Rs 89 lakh crore as of 30th January, shows data.
Join Us On WhatsApp & Telegram Group For Regular Updates
- Here’s What Countries Are Doing To Slow The Coronavirus Outbreak
- Measures Taken By African Countries To Contain The Outbreak Of Coronavirus
- Measures Taken By Asian Countries To Contain The Outbreak Of Coronavirus
- Measures Taken by American Countries To Contain The Outbreak Of Coronavirus
- Measures Taken By Europe To Contain The Outbreak Of Coronavirus
- Kashmir Reports 1st Death Due to Coronavirus
- Private Hospitals To Treat COVID-19 From Tomorrow
- What is Hantavirus and How does it spread
- India to Be Under Complete Lockdown For 21 Days Starting Midnight
- Sounds of Bells, Claps, Plates, Conches and Crackers Reverberated Through “Janata Curfew” as India Thanks Its Heroes
- India lockdowns affect more than 750 million people
- Coronavirus Death Toll crosses 11875 Globally
- Total Number Of Confirmed Coronavirus Cases In India At 294
- India’s Prime Minister Narendra Modi announces “Janta Curfew” on 22nd March
- How to Prepare for Coronavirus and What You Should Buy
- Boya M1 Lavalier Microphone Get Better Audio With The Multi-Functional
- SANDISK CRUZER BLADE 32GB USB FLASH DRIVE
- Pigeon Handy Mini Chopper with 3 Blades – One Of The Best Vegetable Chopper In India