For 3 months RBI has allowed banks to defer house, car, and other loans to EMI. On this suggestion, private, governmental banks and non-bank financial services, or NBFC's, can take decisions. Home loan lending firms or lenders will also be able to offer convenience for consumers. The RBI extended the term loan moratorium and also changed the conditions of repayment (interest payments) to avoid a borrowers cash-squeeze.
What does moratorium mean?
Moratorium means a vacation for payment. This means that no payment will be made by the consumer to the lending institution during the moratorium phase. The interest accrued for the moratorium period is due after the conclusion of the moratorium phase. Therefore, it's like payment deferment.
Below are Major announcements by RBI related to EMI Moratorium
- The three-month moratorium continued from 1 June until 31 August
- It covers all loans from home loans, personal loans, education loans, car loans, Business loans, credit card payments, etc.
- Credit or interest is not forgiven and will continue to accumulate on the balance outstanding.
- For 3 months, Borrower would be asked to pay extra interest by either increasing the amount per installment or number of monthly installments.
- This deferment does not have a negative effect on personal credit score or on debt default or corporate default.
Below are the Different Bank links for Apply EMI Moratorium options:
HDFC Moratorium :
Axis Bank Moratorium:
Bank of Baroda Moratorium:
Bank of Maharashtra Moratorium:
IDBI Bank Moratorium:
Yes Bank Moratorium:
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