Should I defer my Loan EMI or not?
Calculate Additional EMI's to be paid if you defer your loan EMI now using
Loan Deferment Calculator
What is the purpose of this Moratorium?
This Moratorium is useful for the borrowers to cut down the burden of debt servicing caused by disruptions on account of pandemic and to ensure the continuity of viable businesses. Since there could be a temporary disruption in the Cash Flows, and in some cases loss of income, for the businesses/ individuals, the Scheme will bring relief to such borrowers. All those borrowers who have regular stream of cash flow should opt for continuation of the regular EMI.
What is the relief RBI has provided for retail loan under regulatory package?
RBI has allowed all the banks to grant a moratorium of six months on payment of all instalments falling due between March 1, 2020 and August 31, 2020. Hence Bank will not raise the instalment demand during this period and Borrowers availing this concession are not required to pay the Instalment during the period. Accordingly the residual tenor of repayment schedule will be extended by six months. It is applicable for all Term Loans in all the Segments, irrespective of the Segment and the tenor of the Term Loans.
Should you take benefit and not pay the EMI?
You may take the benefits under this package if there is a disruption in your cash flows or there is loss of income. However, you must take into account that the interest on the loans continues to accrue on your account and will result in higher cost (though not mandatorily payable immediately and gets postponed by 3 months).
What about your credit card payments?
RBI has extened this relief to credit card owners as well. If you avail the benefit, the overdues in the Credit Card account donot get reported to the credit bureaus for a period of six months. However, interest will be charged by the Credit Card issuer on unpaid amount.
How do I avail this facility?
Most of banks have started sharing personalised updates to your registered mail id/mobile number with the steps to avail this benefit. You can reach out to your banks website and avail the benefits.