Opt for EMI moratorium if there are cash flow problems: experts
4 years, 9 months ago

Opt for EMI moratorium if there are cash flow problems: experts

The Hindu  

Banks have started rolling out three month moratorium on all term loans as announced by the RBI under the COVID-19 regulatory package. However, experts say borrowers should opt for it only if they face cash flow problems. This would be helpful for people who are facing cash flow problems like the self employed category. "If you don't face a cash flow problem, it’s better to pay the EMI and avoid higher interest," he added. In case of credit cards, Mr. Roongta said if there is no major cash flow problem, it is better to pay of the dues, as they attract higher interest rates.

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History of this topic

Personal Loan: Is moratorium a boon or a bane? Find out how it affects your EMI and interest payments
3 weeks ago

Personal Loan: Is moratorium a boon or a bane? Find out how it affects your EMI and interest payments

Live Mint  

Borrowers who find it difficult to repay personal loans can explore the prospect of a moratorium, a temporary period during which they are not supposed to make any payment. It is noteworthy that the moratorium affects loan repayment since interest keeps accruing, following which one has to pay the combined interest, thus pushing the EMIs upward. Increase in EMI amount: …

Loan moratorium case | Refund penal interest on EMIs, Supreme Court tells lenders
3 years, 9 months ago

Loan moratorium case | Refund penal interest on EMIs, Supreme Court tells lenders

The Hindu  

The Supreme Court on Tuesday directed banks and financial institutions to refund compound interest, interest on interest or penal interest collected on EMI for loans during the period of moratorium from March 1 to August 31 last year. The court said the amount accumulated as compound/penal interest or interest on interest during the six-month moratorium on term loan EMIs should …

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period
4 years, 2 months ago

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period

News 18  

The Reserve Bank of India had in March, after the outbreak of the novel coronavirus, provided a moratorium on repayment of EMIs and credit card dues for three months. The top court in the due course directed the Centre to implement “as soon as possible” interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme. …

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium
4 years, 2 months ago

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium

News 18  

New Delhi: In a relief to borrowers at the onset of the festive season, the government on late Friday night announced waiver of interest on interest for loans up to Rs 2 crore irrespective of whether moratorium was availed or not. The apex court on October 14 directed the Centre to implement "as soon as possible" interest waiver on loans …

SBI loan restructuring: How interest will be calculated during moratorium extension period
4 years, 3 months ago

SBI loan restructuring: How interest will be calculated during moratorium extension period

India Today  

A few days ago, the country’s largest lender State Bank of India came out with a set of rules and regulations for offering an extension on loan repayments to those affected financially by the Covid-19 pandemic. However, there are several key aspects that Covid-affected customers need to know before availing moratorium extension on repayments under SBI’s loan repayment framework. Loan …

Loan moratorium over: You can still avail extension of two more years
4 years, 4 months ago

Loan moratorium over: You can still avail extension of two more years

Live Mint  

In view of the pandemic of Covid-19, the RBI had, vide a Circular dated 27 th March 2020, permitted the lenders to allow a moratorium for three months of EMI, falling due between 1 st March 2020 and 31 st May 2020, for various categories of loans. But the things became clear when the RBI circular of 6th August 2020 …

Banks Free to Restructure Loans, but Can't Penalise Borrowers Availing Moratorium Benefit, SC Told
4 years, 4 months ago

Banks Free to Restructure Loans, but Can't Penalise Borrowers Availing Moratorium Benefit, SC Told

News 18  

Banks are free to restructure loans but they cannot penalise honest borrowers by charging interest on deferred EMI payments under the moratorium scheme during the COVID-19 pandemic, a petitioner opposing the move said in the Supreme Court on Wednesday. A bench headed by Justice Ashok Bhushan, which commenced final hearing on a batch of pleas raising the issue of interest …

Loan moratorium can be extended by 2 years: Govt
4 years, 4 months ago

Loan moratorium can be extended by 2 years: Govt

Live Mint  

The moratorium for repayment of loans can be extended by up to two years, according to a 6 August circular by the Reserve Bank of India, solicitor general Tushar Mehta told the Supreme Court on Tuesday. The central government also apprised the bench that it has filed an affidavit stating that the National Disaster Management Authority has taken cognizance of …

Interest waiver on EMIs during moratorium against basic canon of finance: Centre
4 years, 4 months ago

Interest waiver on EMIs during moratorium against basic canon of finance: Centre

Live Mint  

Waiver of interest on deferred EMIs during the moratorium period would be against “the basic canons of finance” and unfair to those who repaid loans as per schedule, the Centre told the Supreme Court on Tuesday. The government said any “post facto” change in the terms of the RBI circulars with regard to non-charging of interest during the moratorium period …

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31
4 years, 4 months ago

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31

News 18  

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced by them following the outbreak of the COVID-19, sources said. It was only a temporary reprieve to borrowers affected by the pandemic, the sources said, adding that …

SC directs Centre and RBI to review loan moratorium scheme
4 years, 6 months ago

SC directs Centre and RBI to review loan moratorium scheme

Live Mint  

NEW DELHI: The Supreme Court on Wednesday directed the Centre and Reserve Bank of India to review the moratorium scheme on term loans and create tailored schemes for various sectors, including agriculture. The central bank had on 22 May extended moratorium on term loans till 31 August amid the nationwide lockdown due to covid-19. In March, the central bank had …

Waiver Of Interest On Loans During Moratorium Affects Stability Of Financial Institutions, RBI Tells SC
4 years, 7 months ago

Waiver Of Interest On Loans During Moratorium Affects Stability Of Financial Institutions, RBI Tells SC

Live Law  

The Reserve Bank of India has filed its counter affidavit stating that a waiving off interest on term loan repayments during moratorium would not be prudent as it would hit the health of banks & risk their financial stability.On May 26, the Top Court had sought a response from the RBI in a plea regarding the levy of interest on …

Know how loan moratorium will work in case of no-cost EMI
4 years, 7 months ago

Know how loan moratorium will work in case of no-cost EMI

Live Mint  

Many times people opt for no-cost equated monthly installments when they buy electronic items or gadgets such as a refrigerator, air conditioner or mobile phone online or through offline retailers. However, if you opt for a moratorium in case of a no-cost EMI, you may end up paying a very high rate of interest on your outstanding loan amount. Bajaj …

Moratorium will hurt NBFC balance sheets: experts
4 years, 7 months ago

Moratorium will hurt NBFC balance sheets: experts

Live Mint  

The six-month moratorium on loan repayments will hurt the balance sheets of Indian non-bank financiers, as most borrowers availed the scheme, but the lenders were denied the benefit by banks, said industry experts. Speaking via videoconference at CII’s Annual Session 2020 on Tuesday, the experts said while the moratorium will help borrowers, it was not the most effective solution to …

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]
4 years, 7 months ago

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]

Live Law  

The Maharashtra Chambers of Housing Industry – Thane Unit has approached the Supreme Court of India vide a Writ Petition under Article 32 of the Constitution of India challenging the decision of the Reserve Bank of India to allow levy interest during the 6-month moratorium period announced in the wake of COVID-19 lockdown.The MCHI – Thane Unit is an association …

HDFC Bank extends EMI moratorium till August. Check eligibility, how to avail
4 years, 7 months ago

HDFC Bank extends EMI moratorium till August. Check eligibility, how to avail

Live Mint  

In line with the RBI guidelines, HDFC Bank is offering it's customers EMI moratorium and credit card outstanding moratorium to help them sail through the disruption caused by coronavirus pandemic. If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. …

Loan moratorium extension will take care of cash-flow disruptions: SBI chief
4 years, 7 months ago

Loan moratorium extension will take care of cash-flow disruptions: SBI chief

Live Mint  

The Reserve Bank of India’s extension on Friday of the ongoing loan moratorium by another three months will take care of cash-flow disruptions for borrowers despite the absence of a one-time debt recast relief, said Rajnish Kumar, chairman, State Bank of India. “Our tendency has become that whatever has been given, just take it and ignore it and then start …

RBI monetary policy: Central bank extends moratorium on loans for another 3 months till August
4 years, 7 months ago

RBI monetary policy: Central bank extends moratorium on loans for another 3 months till August

Firstpost  

Reserve Bank Governor Shaktikanta Das on Friday extended the moratorium on payment of loans by another three months till August to provide much-needed relief to borrowers whose income has been hit due to the coronavirus crisis Mumbai: Reserve Bank Governor Shaktikanta Das on Friday extended the moratorium on payment of loans by another three months till August to provide much-needed …

Major Relief For Borrowers! RBI Extends Loan Moratorium By Another Three Months
4 years, 7 months ago

Major Relief For Borrowers! RBI Extends Loan Moratorium By Another Three Months

ABP News  

New Delhi: The RBI announced an extension of loan moratorium by another three months to ease financial stress. The governor Shaktikanta Das held a press conference today and announced a slew of measures in order to control the economic loss of the country caused due to the pandemic and the lockdown. “ In view of the extension of lockdown and …

RBI extends loan repayment moratorium by 3 months
4 years, 7 months ago

RBI extends loan repayment moratorium by 3 months

The Hindu  

The Reserve Bank of India has extended the repayment moratorium of loan repayment for term loans by another three months, till August 31. “In view of the extension of the lockdown and continuing disruptions on account of COVID-19, it has been decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from …

SBI to extend loan moratorium to NBFCs
4 years, 8 months ago

SBI to extend loan moratorium to NBFCs

The Hindu  

In a move that could give a huge relief to the non-banking finance companies facing a cash crunch, the State Bank of India has decided to extend loan moratorium to these entities. The move comes days after a recent meeting between the Reserve Bank of India and commercial banks wherein the issues of moratorium and liquidity flow to NBFCs were …

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans
4 years, 8 months ago

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans

Firstpost  

Bankers believed that some safety net has to be created for both industry and banks for survival first, sources said, adding, revival would follow. Some of the key recommendations included blanket credit guarantee for MSME loans, one-time loan restructuring for sectors hit hard by COVID-19 and raising of moratorium and relief for the NBFC sector, sources said. Based on the …

Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer
4 years, 8 months ago

Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer

The Hindu  

The option of a moratorium on loan repayments that was announced by the Reserve Bank of India last month has mostly been availed by micro, small and medium enterprises while salaried class borrowers have, till now, largely refrained from availing the facility, bankers said. “About 85-90% of businesses in the MSME sector have availed the loan moratorium,” the chief executive …

What does the 3-month moratorium on EMIs mean?
4 years, 8 months ago

What does the 3-month moratorium on EMIs mean?

The Hindu  

The RBI has taken measures to counter the economic fallout of the coronavirus pandemic. Higher reduction in the reverse repo rate is aimed at prompting banks to lend more. Banks are also permitted to defer payment of EMIs for three months. The loan moratorium entails a customer to choose not to pay the monthly instalments.This is on term loans for …

RBI Advisory On Loan Moratorium : Frequently Asked Questions
4 years, 8 months ago

RBI Advisory On Loan Moratorium : Frequently Asked Questions

Live Law  

On March 27, the Reserve Bank of India allowed Banks to declare a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities. ANSWER: Last week, the Reserve Bank of India announced a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital …

Coronavirus | How will the three-month moratorium on EMIs impact customers?
4 years, 9 months ago

Coronavirus | How will the three-month moratorium on EMIs impact customers?

The Hindu  

The story so far: On March 27, the Reserve Bank of India slashed interest rates to counter the economic fallout of the coronavirus pandemic. It also announced other relief measures, which included permitting banks to provide a three-month moratorium on all term loans. Due to economic disruptions caused by the nationwide lockdown which has led to stress in the financial …

EMI Moratorium: Good or Bad? Experts explain how it impacts your loan
4 years, 9 months ago

EMI Moratorium: Good or Bad? Experts explain how it impacts your loan

India TV News  

As the new financial year has begun, so many public sector banks including some private banks announced tweeting that they will offer the service of 3 months moratorium to their existing customers and they can avail the service according to their needs due to Pandemic, COVID 19 impact on finances of people. People were worried even after the announcement by …

Coronavirus Outbreak: Bank of Baroda offers refund of March EMI to home, auto loan customers
4 years, 9 months ago

Coronavirus Outbreak: Bank of Baroda offers refund of March EMI to home, auto loan customers

Firstpost  

State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need during the disruption caused by COVID-19 pandemic Mumbai: State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of …

Coronavirus Outbreak: Most private banks go for 'opt-in' option on loan repayment moratorium
4 years, 9 months ago

Coronavirus Outbreak: Most private banks go for 'opt-in' option on loan repayment moratorium

Firstpost  

Most of the private sector lenders have decided to go for the “opt-in” option on loan repayment moratorium, putting the onus on the customer to take the initiative of informing the bank of their choice to go for the three-month breather offered by the Reserve Bank of India Mumbai: Most of the private sector lenders have decided to go for …

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later
4 years, 9 months ago

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later

Firstpost  

The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according to the moratorium scheme announced by state-owned banks New Delhi: The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according …

HDFC Bank offers EMIs, credit card dues moratorium for 3-month. Here's how customers can avail it
4 years, 9 months ago

HDFC Bank offers EMIs, credit card dues moratorium for 3-month. Here's how customers can avail it

India TV News  

HDFC Bank EMI, Credit Card Dues Moratorium: HDFC bank announced EMI and credit card moratorium to its customers in line with the Reserve Bank of India guidelines that all lending institutions will have to give their borrowers a three-month moratorium on term loans in wake of the coronavirus outbreak hitting the economy hard. "In line with the RBI guidelines and …

Banks start rolling out EMI moratorium scheme as per RBI direction
4 years, 9 months ago

Banks start rolling out EMI moratorium scheme as per RBI direction

Op India  

To give a relief to people who may have suffered a hit on their income due to the Wuhan Coronavirus pandemic, the Reserve Bank of India had on 27th March had permitted the banks to allow a moratorium of three months on EMI payments of all term loans. State Bank of India, India’s largest bank, tweeted yesterday, “In terms of …

Coronavirus Outbreak: PSU banks announce moratoriums on loan EMIs following RBI directive
4 years, 9 months ago

Coronavirus Outbreak: PSU banks announce moratoriums on loan EMIs following RBI directive

Firstpost  

Several reports have stated that despite the central bank’s guidelines, borrowers were receiving messages reminding them that their EMI is due. Syndicate Bank The bank has deferred EMIs of housing loans, vehicle loans, MSME loans and payment of all other term loans falling due after 1 March and up to 31 May, 2020 by three months. Indian Bank Indian Bank …

Attention Credit Cardholders! RBI's 3-month moratorium on EMIs is not applicable on credit card bill payments
4 years, 9 months ago

Attention Credit Cardholders! RBI's 3-month moratorium on EMIs is not applicable on credit card bill payments

India TV News  

In a massive relief for common man and business in wake of coronavirus crisis, the Reserve Bank of India on Friday reduced its repo rate by a huge 75 basis points. RBI also said that all commercial banks, co-operative banks, all-India financial institutions, and NBFCs are being permitted to allow a moratorium of three months on payment of installments in …

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months
4 years, 9 months ago

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months

India TV News  

India's biggest bank, the State Bank of India on Friday announced that all term loan EMIs will be deferred by three months automatically. Announcing the decision, SBI Chairman Rajnish Kumar told CNBC TV, "Installments will get automatically deferred by 3 months for term loans and customers don't have to apply to banks for it." Addressing media, the Reserve Bank of …

RBI puts a pause on EMIs for 3 months in fight against COVID-19. All you should know
4 years, 9 months ago

RBI puts a pause on EMIs for 3 months in fight against COVID-19. All you should know

India TV News  

The Reserve Bank of India on Friday allowed all the banks to hold EMIs for a period of 3 months. RBI puts a pause on EMIs for 3 months in fight against COVID-19 | What you should know RBI has allowed all the banks that if they want then can pause on collecting EMIs for all types of term loans …

RBI Permits Lending Institutions To Allow 3-Month Moratorium On Term Loans [Read Full Statement]
4 years, 9 months ago

RBI Permits Lending Institutions To Allow 3-Month Moratorium On Term Loans [Read Full Statement]

Live Law  

As a part of decisions taken to mitigate the impact of COVID-19 on economy, the Reserve Bank of India Governor on Friday announced that all commercial banks and non-banking financial companies are permitted to allow 3-month moratorium on the payment of installments of term loans outstanding as on March 1, 2020.In respect of working capital facilities sanctioned in the form …

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