Do I need to take advantage of RBI 3 month moratorium on loan EMI?
RBI has taken a few steps in its recent meeting to improve the Indian economy that has impacted due to the Covid-19 crisis. Among the various measures announced, 3 months moratorium on loan EMIs is a BIG step that would help many individuals who might not be able to pay Loan EMIs due to Indian economy lockdown. In this article, we would provide some of the frequently asked questions about RBI 3 month moratorium and indicate whether one need to take advantage of such deferment of loan EMIs.
Also Read: Should you exit mutual funds in this huge stock market crash?
What is RBI 3 month moratorium on Loan EMIs all about?
India is under lockdown due to corona virus situation. Many of us might not be able to pay our outstanding loan EMIs for next few months. Considering this crisis, RBI has proposed that banks and financial institutions can provide 3 months moratorium on loan EMIs. In simple terms, this is like deferment of EMI payments where you need not pay your monthly installments for next 3 months.
What loans are covered for RBI 3 month moratorium on Loan EMIs?
RBI indicated that term loans which include personal loans, home loans, auto loans (Car loans, two wheeler loans, etc.), education loans and loans taken for purchasing consumer durables like ACs, fridge, mobile phones will be covered under this 3 month moratorium.
Frequently Asked Questions (FAQs)
Now let us look at some of the frequently asked questions on this loan EMI deferment.
1) Which bank and financial institution is eligible to provide this 3 months relief?
RBI indicated that all commercial banks, which includes regional rural banks, small finance banks, co-operative banks and all NBFCs which includes housing finance companies and micro finance enterprises can provide this relief to their customers.
2) What loans are eligible for this 3 month deferment of loan EMIs?
Specified loans that are taken on or prior to 1st March, 2020 are eligible for this deferment for the period of 3 months.
3) How do I know whether I am eligible for 3 month loan deferment?
RBI proposed this relief, however it is at the discretion of the bank or financial institution to provide a moratorium to its customers. They need to first discuss internally within the board of such bank or institution and then would be communicated to you. You need to wait for the communication from the bank.
4) If my bank provides 3 months relief, am I automatically covered?
No. You are not automatically covered. First bank would discuss internally. Second, they would communicate to you if you are eligible for such relief. Third, you need to accept if you want this 3 month moratorium. Fourth they would confirm once they accept your proposal.
5) If I opt for a 3 month moratorium, would it affect my Cibil Score?
No. RBI indicated clearly that due to this deferment, no credit score would get affected.
6) Is this 3 month deferment applies to credit card payments too?
Yes. Though initially there is no clarity, RBI has clarified. This 3 month deferment is also applicable for credit card payments too. Means you need not pay credit card dues for next 3 months provided your bank provides such relief and you accept such relief.
7) Would there be any interest charged for this 3 month period?
If you are opting for 3 months loan EMI deferment, your bank or financial institution WOULD charge interest for this 3 month period on the outstanding loan amount.
8) Would there be interest if I use this relief on credit card outstanding?
Yes, your bank would charge interest for this 3 month period at applicable rates.
9) What happens after this 3 month moratorium period?
Principal+interest whatever is due for this 3 month period needs to be paid immediately after this 3 months moratorium period.
10) Is there 3 months relief for business loans?
Businesses would have taken working capital loans for their day to day running the operations. They can defer the payment of interest on such loans for this 3 month period, which applies to all loans outstanding as on 1st March, 2020. This would not bring down the asset classification downgrade.
Also Read: Who would benefit from recent Repo Rate Cut and other measures from RBI?
Do I need to take advantage of RBI 3 month moratorium on loan EMI?
Here are few ways to handle this situation. One should note that you should be able to view this not just 3 months, but at least between 3 months to 6 months crisis.
i) If you are salaried employee or the businessman and you are still able to get fixed / regular income, then pay your EMIs in a regular way.
ii) Can you pay your EMI’s with your emergency money or investments without disrupting your existing expenses, then go head pay your EMIs in the normal way.
iii) If you feel that your income is going to be disrupted due to corona virus situation for next 3 months, you should opt for this 3 month moratorium.
iv) If you get an indication that you would lose a job or sense layoffs, opting for this 3 month moratorium can benefit you so that you can join another job or find alternative ways of paying off such dues. However, you need to pay interest + entire loan EMIs after 3 months period.
v) While home loan EMIs can be deferred, personal loans or credit card payment deferment should be avoided. Interest on credit card outstanding or on personal loans are generally very high compared home loan. Hence, after this 3 month moratorium, you would see huge interest to be paid on such loans. Check if you can avoid them.
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Suresh KP
Do I need to take advantage of RBI 3 month moratorium on loan EMI
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Defir my lone emi 3 manths
stop emi home lone & car lone
Dear sir,
. I have a personal loan no 461GPLFA773139 from your company
As per announcement by our honourable governer of RBI, all EMI are postponed for 3 months.
But still i got text message from your company to make sufficient balance for EMI which will be present on 2nd April 2020 in my Canara bank account.
Kindly do the needful because we have not received any amount from my employer because of lockdown since 22nd March.
Please help in this regard for us because its a very tough time for me.
Thanking you
Regards
Mayank Jain
Agra
Mayank, You need to write this to your bank / financial institution wherever you have taken loan.
i have a home loan… paying 35500 per month.
how much I will have to pay after this 3 months.
I’ve Hybrid Flexi Business Loan of Rs. 820000 with Bajaj Finserv and from this just used Rs. 495000 and they have freezed the remaining amount without prior information, which now I required to pay the salary of employee. Please suggest.
Till date I’m paying the EMI on time without fail. Still they blocked the Loan account without prior information
Sample this: All deposits have to be paid interest at all times. So if X’s deposit of rs100 is given to Y as a 1 yr-loan & Y is allowed to pay it off after 1yr3months, X has to be paid interest on her deposit for 15 months. So Y is charged interest on her loan for 15 months. . Please note the above is a classified tweet from Mrs Lata Venkatesh.
Thats correct Anish
I geniuenly feel this is a sheer madness and an eye washer for common man.
There only honorable PM announced we will get 3months relief from all types of EMI and then now you are putting a clause after 3months one has to pay these EMI together immediately.. How is that possible??
Instead request the term is increases by the 3 months and no interest is charged. People are facing genuine crisis of funds.
The govt needs to think of the common man and small business class too who are not sure if their business and job would survive after COViD 19 is over. The Govt should give a standing instructions to the bank to not force their clients to pay and extend the EMI term by the no of months one has not paid.
It’s a humble request to the Honorable PM to rescue the common man from the burden of EMI for atleast 6monts to a year. So that one can survive and request the bank to extend the loan term. If big business men cannot survive and have announced pay cut of employees then how will the employees pay or a small business men and meet the ends in such. Situation.
Please think consider and implement a bail out period for the common man who is always at the receiving end a suffers the most. Please honorable Modiji help us survive. No one wants to commit suicide all want to survive please please help us in this to. E of crisis.
Hello, my name is Anilkumar. Iam taking one mobile phone loan through bajaj finserv.this is applicable about 3 months moratorium.
Bajaj Finserv falls under NBFC and the loan you have taken is consumer loan. Hence these would fall under the purview. Pls reach out to bajaj finserve tpo check whether they are providing such relief. If yes, are there any charges and how they would collect the 3 months overdue (either they are extending the tenure of loan or we need to pay all dues after 3 months period)
Hai sir I am vijay. I took personal loan on 7/3/2020 . It is I need to pay 3monthsnloan amount or I will get. Any conession
Vijay, Pls reach out to your bank or financier whether they are providing such relief. If yes, are there any charges and how they would collect the 3 months overdue (either they are extending the tenure of loan or we need to pay all dues after 3 months period)
Hello ,sir
I am pharma marketing employee our salary LL be different compare other industries for example : package of 1.8 lakhs which means after deducting LL be having around 12.8k/ pm and company provides daily allowance like around 250/- , due to Corona virus outbreak , we are not allowed to work ,we have lost daily allowance around 9k , so I have loan in HDFC bank so , help me how to stop my EMI on lockdown period , no customer care , no break for lockdown ,m very much confused
Sir I have taken loan from application like Khissht and Cashbean.. so am I eligible for 3 months concession I have to pay the loan of 4800 in 15 days. Sir please let me know as customer care from this application are not able to answer.
Our government and prime minister should look into this matter seriously after all we are also citizens of of our country. Everyone is showing migrants workers plight. What about us? We middle class families are also suffering the most. How can we manage our EMI as well as household expenses at the same time amidst this lockdown.
My Name is ishan Patel from Ajwa road vadodara.
I am auto rickshaw driving
I’m not pay EMI’S of April month???
I have no income for last 10 days.
Please help us.
Cancel the EMI’S. OF april month
Sorry to hear about you Ishan. Can you pls reach out to your banker / financial institution and ask them whether they are providing relief?
Hello sir I have personal loan in hero fanance , I bought a bike.. now i am in critical position .. I am a tiusan teacher .. what can I do ?
Sir, I have Homeloan and personal loan in HDFC bank. My loan EMIs are taken in ECS.The Emis are deduct autometically in this month or any request to bank do not deduct Emis in this month.
Hello Mohd, HDFC has to announce that they would provide relief to its customers. Pls reach out to them.
After conclusion of this deferment period, will the bank recover the amt of 3 months in one go.
I am a business man running 3 factories. Because of this lock down my business suffered heavily We are in a loss due to lockdown besides I have to pay salaries to my employees , Rent to the premises EMIs to the Banks. I have kept money to make payments to employees and rent to the owner of the premises.my loan EMIs are taken in ECS .Kindly advise me to do what ? I
Hello Rajamani, If you have working capital loans, then you can approach your bank for loan EMI deferment. Beyond this, I am not sure whether there is any other relief which you can obtain.
Hello sir I have personal loan in Bajaj fanance.. now i am in critical position .. my job gone.. what can I do
Sorry to hear about your jpb loss. In this case, I would advice you to take this advantage till you get another job. Wishing you good luck.
What about the mutual funds investment.
Sir Iam taking short term loan for the tenure of 14 days through online Instant loan App . Now everywhere is lockdown and the due date is almost 3-4 days of overdue, we are unable to go to our workplace and also its impacts on our earnings severely . But after the regulation of moratorium has been published by RBI why these lending institutions imposed fine charges on the loan amount . After all we are from middle class family earning income of 15000/- to 16000/- monthly if these lending institutions do such activities then how will we survive like this .
Please do the needful from your end so that we can get relief from additional charges and if possible kindly extend till lock down is over.
At least at this hour our honourable PM should intervene in this matter an nd give relief for interest payment on business lons at least, businesses are not receiving any payments from their customers.
Sir if suppose there is no amount in our account to pay during these 3 months , what will happen to our ecs ? Will there be a bounce charge or how it is or is that we have to inform to the bank regarding the non-payment , please clarify?
Hello Pradhulal, Assume your bank has not provided relief and you have no funds in your account, then bank would levy interest and cheque bounce charges for sure. But better to get clarity on this instead of me talking on behalf of your bank
What will happen to the loans which are taken online, will there be any relief on these?
What will happen to the online loans taken if we miss the given date, will there be any relief on these?
In the case of the credit card when a person has to pay back at the end of the 3 month moratorium how will it be possible for anyone to make the whole payment in lumpsum after no business over 3 months. It is a godsend to the banks and NBFCs they earn the interest and later they charge a late fee and interest on the unpaid cumulative figure. This does not make any releif anyway.
In yhe same lines with the EMI and Premiums people will not be able to pay these figures and when and if they will be able to pay we need a reasonable window to allow 0% interest and penalty on EMI and premium payable. For small businesses it will take a while to get back on the road. You need a reasonable period post COVID recovery to be able to make some revenue to pay all commitments.
Manish, My advice is reach out to your bank and get this clarity whether they can provide any interest relief or adding this amount in future EMIs etc.,
Hello sir,
I took educational loan from Neev finance, Shall I pay 3 months emi in one settlement after this 3 month moratorium.?
It’s his own idea. Let’s hear from the institutions and act upon.
Thank you for your comments Venkat. Yes these are the interepretations done by us based on the information available. Banks can come forward and provide interest relief and even merge the 3 months EMI loan deferment to future EMIs too. Lets wait for each bank to come up with their own strategy during this trouble times and hopefully they would help the loan payers
Heena
I hv taken a loan from cash bean and kreditbee but due to coronavirus economic conditions is not good can I pay within 3 months
I am avail loan from muthoot finance against gold as gold loan can I get the benefit for 3 months moratorium in my gold loan
Sir i Mr.Sawrastra Biswas from kolkata and holding a credit card.Shall i get the same benifit 3month exemption in my credit card emi payment.As my financial condition is very poor now…
Sir
I m taken consumer loan mobile loan on jan 2020 from IDFC FIRST BANK I paid last 2 EMI regularly my next EMI on 2 nd April and send me reminder to pay EMI I small businessman my family ia depend on me and current lockdown situation I can’t possible to pay EMI
What cloud I do and how can I help current RBI EMI exemption decision please guide and help me and
Thanking you
Sachin Vyawahare
My last installment is debited on 10th March (March instay) I just want to take benefit for April month only I will pay may installment is it possible that I will take benefit for April month is it possible?
Dharmesh, first you need to get this relief proposal from your bank. Pls reach out to your bank customer care and they can guide you whether you can get 1 month relief
I totally agree with Mr. Raghvender’s opinion. RBI should have passed the instructions to all financial institutions to imply 3 months moratorium for EMI/ credit Card / working capital at normal rate of interest only. I don’t think that these financial institutions are sensitive enough that they will offer this scheme to all their customers on their own will. If this is a relief package offered to middle class, it has to be implemented by force not by discretion or mercy of these financial institutions.
They said 3 months EMI relief, again putting additional interest is this good, Government always in a way killing middle class family’s, government doing brokerage, putting burden on low class family’s favouring upper class people to get more money, dhochukuntune vuntaru,
This so called relief does not actually help.. it looks like it’s just some name sake relief with no added value or benefits.
Sir I’m take two personal loan 1HDB Finance And Hdfc bank if in I have sufficient balance my account so bank debit my emi and tell me how can I’m telling bank don’t debit my emi 3 months this situation and bank customer care services can’t connected???
Sandesh, Except for reaching out to bank customer care, nothing else can be done. You should get the proposal from bank and accept it and check for any T&C and interest there-on before you take advantage of this 3 months loan deferrment.
I am working a Freelance Security Bouncer due yo lockdown I don’t have any income, please let me know what should I do to avail this 3 months moratorium.
Please help.
Mohd, You have not indicated the loan EMIs which you need to pay. Since your income is stopped, I would advice you to take advantage of this and defer the loan EMIs. Pls note you might need to pay interest (depending on what rate your bank might charge) post 3 months and your bank can ask you to pay dues after 3 months or adjust in future EMIs
Hello sir.. I took loan from kredibee online finance, this financial sector also under 3 months emi relief or not
Hello Pradeep, I visited their website and could not figure this out whether it would fall under NBFC. You need to approach their customer support and find out
I pay EMI for Rs. 18260/- PM favoring Bajaj Finance on 2nd day of every month by way of ECS through SBI. I do now face a critical financial obstruction following on going COVID2919 crisis. If I take the scope of 3 months moratorium then what amount and by which way the relevant outstanding is to be paid?
Sir
Dose Mobile app loan(kredit bee, cashbeen. Ext…) under rbi ???
I have taken a bike loan from L /T Finance so can I also get 3 months relief as I am driving an auto an earning on daily basis
L&T Finance falls under NBFC purview of RBI definition, hence you are eligible for this. But L&T finance need to provide this relief to its customers. Pls reach out to their customer support for more info
I have taken Instant loans from cashbean and kreditbee will these be covered under this moratorium.
Sir I am a self employed lady doing typing job and earned for my family I have a month’s amount for installment of my housing loan but after deduction of the same I will come under financial crisis as there is no work for last month with me whether I wait for the communication from my Finance company or I withdraw money from my bank to avoid financial crisis
Hi
I strongly recommend to govt that if they want to complete lockdown by public then they must allow moratorium of 3 months without any interest charge during this period for all loans including credit card outstanding bills.
RBI makes people fool. Modiji understand the matter and wake up for middle class people also who pays taxes to the nation.
I already pay emi of March to may of education loan
Can I take advantage of RBI 3 months moratorium on loan emi
Yes. Pls reach out to your bank. If they are offering this relief, check any terms and conditions and how these 3 months EMI would be paid and what are the interest that are charged after 3 months.
SUM OF LOAN COMPANY ASKING US TO CLOSE ALL OUTSTANDING AMOUNT
Dear Anil Bachan Singh T, Congratulations save Rs 126!, Enjoy 20% discount on prepayment fees by closing your Credy loan today! Just pay Rs xxx to close the loan for actual Rs XXX pay now …
And Bajaj finserv also send Pay ur EMI on date
They are not telling u can pay ur EMI after 3 Months
What should I do, Boz i will be not getting full salary
Hello Anil, Pls reach out to Bajaj Finserv customer care. If they are offering this relief, check any T&C and how these 3 months EMI need to be paid and what are the interest that are charged after 3 months.
To,
The Finance Minister,
Government of India.
SUBJECT: RBI 3 MONTH MORATORIUM ON LOAN EMI
RBI announced moratorium of 3 months of EMI’s. This will be an extra burden of compound interest which will be capitalised and will be added to the principal borrowed amount.
This is not the package for the middle class. This is the package for Banks & Finance Companies.
Suppose, if we, the middle class citizens are paying our regular EMIs in this critical situations, Banks & Finance Companies will be flushed with huge amount of non-investable fund. In the current situation, who will borrow fresh fund?
It’s an opportunity for them that their funds are automatically reinvested with us, without marketing.
Through our experience, we have learnt that the middle class and relief are two opposites in the real world.
Isn’t this rather a relief measure taken for their prosperity than ours’?
“COMPLETE WAIVER OF INTEREST SHOULD BE GRANTED FOR THE NEXT 6 MONTHS ON BORROWED FUND AS MOST OF THE CITIZENS ARE EXPERIENCING TOTAL LOSS OF INCOME DUE TO THE ESSENTIAL LOCKDOWN.
AFTER THE CURRENT SITUATION IS UNDER CONTROL, ONLY THEN START THE EMI AND CHARGE INTEREST FROM THAT TERM ONWARDS, NOT BEFORE THAT.”
Note: We all should forward this message to the Finance Minister.
Citizen of India
I echo with you Rohit. However, when bank proposes this relief to you, pls check about interest part. If they are able to reduce interest or waive-it off, that could be big relief.
My ICICI, CITI BANK AND SBI BANK CREDIT CARD PAYMENT IS DUE. WOULD I GET ANY RELIEF ON CREDIT CARD PAYMENT
Payal, As per RBI it is the discretion of your bank. Pls reach out to your bank customer care. If they are providing relief, just check T&C and interest there-on and when you need to pay this 3 months EMI outstanding (immediately after 3 months or whether they would adjust in future EMIs)
This is not a relief at all after 3 months bank will take complete amount immediately with interest whatever they calculate, now please tell me what is relief for salaried person how he/she will pay whole amount if their salary is not that sufficient.
Rule should be these 3 months should be carry forward
Rules are for citizen not to deprive in negative impact
Wanted to understand why they would be charging extra interest when it is an RBI stated moratorium. How much would be there interest?
Hello Raj, The moratorium is about deferring your loan EMI or credit card payment. After 3 months moratorium, they would calculate interest and principal pending on your credit card and they would ask you to pay. Your bank would send appropriate message on how they would handle this incl interest chargeable on such credit card outstanding. Pls wait till such time or call the customer support of your bank.
Suresh sir…my name.is nikhil..
Maine mobile me se loan.application cashbean se loan liya hua hain…every month leta hu me aur time pe pay karta hu 14 days ke.liye deta h vo loan..par is bar me nahi kar pavu va sir ji pay…to kya usme.mujhe bhi relief mil sakta h.kya 3 month…because cashbean application is under RBI rule..
Nikhil, I am not sure whether mobile app loans would fall under RBI purview. Pls reach out to their customer support and find this info
Mr.Suresh
When you are also not clear on the plans of banks please dont provide answer now itself.
If a person has to pay principal and interest for the 3 months period immediately after moratorium period from where he will get this money. please think practically. either loan tenure will be increased by 3 months or this amount will be distributed equally in tenure period. that would be the relief for the consumer not as stated by you.
Rajesh, We do not know what bank T&C would be. It could be even such they can reduce the interest for this period or waive-off too. Hence I indicated that they need to wait for their bank to come back or they need to approach bank customer support to get this clarity. This clarity is not from Govt of India, but individual banks / financial institution which would be different from bank to bank or financial institution
Dose baja finserv is under rbi ?
Bajaj Finserv is NBFC company and falls under RBI definition indicated in the moratorium.
Sir iam loan in small company (Moneed cashpeli).I lost my job.my financial condition is bad.sir can I asking company to extra time.
Sit I take a pertional loan from bajaj finservic and I pay my every emi on date but now my economical conditions ia verry bad. Sir plz tell me can i get some extra time .I pay my emi from sbi
Hello Sima, Bajaj Finserve falls under NBFC. Hence as per RBI guidelines, even they would fall under this. However, it is at the discretion of Bajaj Finserv to provide this 3 months loan deferment. While they would reach out to individual consumers in next few days, you can also directly reach out to their customer support number to get quick info on this.
Thanks for good information. I am sharing.
KVS Krishnan
Thank you Krishnan. If your bank provides this option, would you opt for it?
RBI has not given any solution here. If it is at bank discretion then why it is called as relief package to middle class people. Other countries has strictly said not to charge EMI
And as per RBI 3 months will be added to ur schedule not that it has to be paid at once. No extra interest and all.
Let’s not be happy here it is just a package which will not reach middle class people..
This is a reason Indian citizen don’t trust government and make his own plan for for his livings even in current covid 19 situation….
Govt shld give relief in such a way that citizens don’t worry and be inside home ..
I agree with you Raghavendra. It is at the bank discretion. Let us hear from banks how they would handle this.
True. it should be an order from RBI and government at this stage and not advise using some special power.
only few good PSU banks may follow this and pvt banks and NBFCs may not since they mostly think of profits and not much social responsibilities as per my opinion.
Raghavendra, I agree with you. If it is to bank discretion, we middle class people will never get any benefit. But this cannot happen to us every time.
In case we don’t get the relief, what is the alternative???
You are absolutely right!
RBI saved its head, profits are going to Banks. Customers are fools, suffering. All burdens on the heads of poor customers.
What a clean cheating!