Broadcast 31 Mar-2020 Read time : 02 Minutes
EMI Deferral: Is it automatic? Are the credit cards bills suspended? What happens for businesses loans and other questions on RBI Moratorium answered during Covid 19. Important Questions.
Q: My EMI is due soon. How to know if the payment is not deducted from my account?
A: The RBI has only allowed banks to allow a moratorium. Individual banks will have to allow suspension of EMIs. The borrower will have to request the bank and show that his or her income has been impacted by the Covid 19 disruption. This means that unless you have specific approval from your bank, your EMIs will still be deducted from your account.
Q. Is this a waiver of EMIs or a deferment of EMIs?
This is not a waiver, but a deferment. You will have to pay the EMIs at a later as decided by the bank. The RBI has told banks to have board approved policies in place on moratorium/deferment.
Q. Which banks can offer this deferment to their customers?
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) included.
Q: Does the moratorium cover both principal and interest?
A: Yes. It does. If announced by your bank, you can forward payment of your entire EMI, including payment and interest.
Q. What kind of loans does the moratorium cover?
The RBI policy statement explicitly mentions term loans, which includes home loans, personal loans, education loans, auto and any loans which have a fixed tenure. It also include consumer durable loans, such as EMIs on mobiles, fridge, TV etc
Q: Does the moratorium cover credit card payments?
A: Credit card is also a revolving credit. It is not a term loan. It can not be covered under the moratorium.
Q: I have taken a business loan. Can I not pay my EMI?
A: On retail Loans, the moratorium facility is not available.
Q: What has the RBI announced for businesses?
A: The RBI has allowed deferment for interest payments for all working capital loans taken by businesses. After the expiry of the deferment period, the payment of accumulated interest can be paid for the missed period.
The conditions of the Loan agreement will not change because of change in the Moratorium/deferment rule any time soon. This does not result in asset classification downgrade.
IMPORTANT THINGS NOW to RE-CONSIDER
It might give you relief for a short time, but going by experts whatever benefits Banks are passing on in the name of Moratorium is going to hurt you financially in long run.
Baggage on EMI
If you don`t pay your EMI for next three months, you will end up getting hurt financially. Bank will increase the pre decided amount after three months to adjust the Moratorim. Consider it this way, If you have to pay…. ! to get a full copy of report drop a message on our Facebook
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Read More: 7 things you should do before applying Home Loan.