3 Months Moratorium - All you need to know!

The lockdown due to the Corona virus is taking a toll on India’s economy. Following this, the Reserve Bank of India (RBI) announced several measures to boost the economy on March 27, 2020. The three-month EMI moratorium is the reform applicable to common people. 

Vishraam Builders, the most eco-friendly builders and developers in Thrissur brings to you an insight on all you need to know about the 3 months moratorium. 

The moratorium directive means that borrowers would not have to pay any loan EMI installments for three months, including principal and interest. The  lenders like all commercial banks, NBFCs, and financial institutions have been"permitted to allow" a three-month moratorium on  the repayment of installments of term loans outstanding as on March 1, 2020 as per the RBI's notification. 

Is the moratorium granted automatically?

The moratorium will not be granted automatically and can be availed only if your bank offers the benefit. The banks and financial institutions will now have to frame policies to implement the same.

Is it applicable to all banks and financial institutions?

The moratorium is applicable to all commercial banks like local area banks, small finance banks, regional rural banks, and non-banking financial companies. The all-India financial institutions -microfinance institutions and housing finance companies can also give moratorium.

Is it a waiver of EMI payments?

This is NOT a WAIVER! The moratorium only allows you to defer the payment considering the lockdown and the pandemic. When the moratorium period is over, you will be required to pay the EMIs. You can discuss with your bank to understand how they plan to recover these EMIs from you.

Which types of loans are included in the moratorium?

The moratorium directive of RBI has included all term loans like crop loans, agriculture term loans, consumer durable loans, personal loans, home loans, auto loans, education loans, or any other loan that has a fixed tenure.

Are credit card payments included?

Even though credit cards don’t fall under the fixed tenure loan category, the RBI has clarified that they will be covered under the Moratorium directive too. So, for 3 months your credit card payments 

can be deferred as well.

If EMIs are deferred what will happen to your credit score?

As per RBI notification it has been assured that the deferred EMIs will not impact the credit score of the borrower.

Is there any interest or penalty during the moratorium period?

No penalty is charged on the deferred installments but interest will continue to accrue on the outstanding part of the loan during the deferment period.

Will the next EMI due get deducted?

You need to discuss with your bank about this before the date of your next EMI to understand how they are implementing the moratorium. The EMI is deferred for the three months of March, April, and May. 

We hope you have now got a fair idea on all you need to know on the 3 months moratorium. To book your Apartments in Thrissur, get in touch with us at Vishram Builders, reputed builders and developers in Thrissur.