- RBI announces 3 months EMI moratorium
- Banks will extend the tenure by 3 months
The Reserve Bank of India (RBI) has finally announced some relief to Indian borrowers. RBI said that term loans like home loans, auto loan will have three month moratorium on repayment of principal.
This decision will be applicable to all rural banks, regional, co-operative and NBFCs as well. RBI also went on to say that the moratorium will have no impact on individual’s credit history. This decision was taken to easy everyone up from their financial commitments during the 21-day national lockdown due to Covid-19 pandemic.
So if you are one of those who have been paying scooter or motorcycle EMIs, this will be a big relief. RBI wants everyone to have enough cash at home during this lockdown. Banks are allowed to increase the tenure of all existing term loans by three months in case borrowers are unable to pay their EMI for the next three months.
