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

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 RBI to give 3 months loan moratorium because they were getting SMSs and mail alerts from their banks to pay the EMI before the due date. So, to give transparency to their existing customers Banks, NBFCs and financial firms have started to tweet the message and give information about the 3 months loan moratorium by writing that -In terms of COVID-19-RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 & repayment period gets extended accordingly. Keep the funds aside in a liquid fund so that after this period one can prepay.” Says Navlakhi • So, if you are capable to pay the EMI amount for the next 3 months, then it is suggested by the experts that not to avoid the payment Let’s understand via chart that how it is going to impact your loan : EMI Moratorium: Good or Bad? But if you have enough cash for next 3 months then don’t avoid the EMI payment or installments to pay on time • This will just increase the burden for extra 3 months of EMI installments on you • Again it is not a Loan waiver.So, think about your financial status then opt for the moratorium period provided by all the banks due to COVID 19 impact • To avail the service of moratorium many private banks have also asked their customers to get in touch with their banks or send an email regarding the request of loan EMI moratorium/visit the website of their particular bank and click on the moratorium option • One can even email on the particular ID of banks mentioning their loan account type details and all required information • Many banks will offer opt in and opt out option but in some cases one has to get in touch with the bank officials as soon as possible • As new financial month has started so in a day or so rest of the banks will start sending the messages to their customers to opt in and out about the moratorium option • For some banks it will be automatic but some will send SMS to opt in and out the moratorium option • Some banks will reset the EMI amount after all your installments and then ask you topay for the pending 3 months.