EMI Moratorium - Indian Banks- Covid 19

 

Screwed Purse

Most of the banks in India announced the moratorium in the EMI for loans for the next three months as per the advise of the RBI-Reserve Bank of India. The period of EMI Moratorium is from March 01, 2020 to May 31, 2020.

  People in India is suffering from the financial problems due to the epidemic disease - Covid 19. The financial stability of the worls itself has been affected. In Inida, PM announced the complete lock down till 14th April, 2020. Due to this, there is no institutions working in india except the unavoidable such as hospitals banks etc. It resulted the financial crisis amoung the loanees and they couldnt get the money to repay their EMI on their loans. In this scenerio, RBI advised the banks to provide the Moratorium.
Here is a glance on some banks

SBI-State Bank of India

SBI announces that the EMI falling in this period has been extended to 2 months in their twitter.

Punjab & Sindh Bank

They also sannounces that the deferment of installments of months, March, April, May 2020 towards your loan account is available.

Co-Operative Banks

Registar of Co-Operative Societies issued a circular about the moratorium of EMI till 31.05.2020 Penal Interest on EMI will be discounted

Like these, each bank announces their circulars about it.  And some more informations about this is given to my readers. The moratorium on EMI will not write off your loan amount or a part of it or the interest in it for these months. They are just giving you the relaxation or extending you EMI for 3 months.

 You have to pay the EMI completely whatever it is. In this, the period which the loan wil be closed after the EMI will be extended also. There will be an extra payment of interest also which will be the interest calculation is on the principle balance of the loan amount. Since the repayment on the principle balance for 3 months through EMI didnt happen, the interest will not decrease proportionally and those who avail the benefit of this moratorium have to suffer this payment of interest too.

 So I recommend to my readers who have stable income or better financial positions in these days should continue your EMI. That good for you in the interest payment while calculation in total.

Thank You, Have a nice day