_Here are questions on RBI decision related to personal loan / EMI/ creditcard bills answered._
*Q: My EMI is due soon. Will the payment not be deducted from my account?*
A: The RBI has only allowed banks to allow a moratorium. Individual banks will have to allow suspension of EMIs. The borrower will have to request the bank and show that his or her income has been impacted by the coronavirus disruption. This means that unless you have specific approval from your bank, your EMIs will still be deducted from your account.
*Q. Is this a waiver of EMIs or a deferment of EMIs?*
This is not a waiver, but a deferment. You will have to pay the EMIs at a later as decided by the bank. The RBI has told banks to have board approved policies in place on moratorium/deferment.
*Q: Does the moratorium cover both principal and interest?*
A: Yes. It does. If announced by your bank, you can forego payment of your entire EMI, including payment and interest.
*Q. What kind of loans does the moratorium cover?*
The RBI policy statement explicitly mentions term loans, which includes home loans, personal loans, education loans, auto and any loans which have a fixed tenure. The also include consumer durable loans, such as EMIs on mobiles, fridge, TV etc
*Q: Does the moratorium cover credit card payments?*
A: Since credit cards are defined as revolving credit and not term loans, they are not covered under the moratorium.
*Q: I have taken a business loan. Can I not pay my EMI?*
A: The moratorium has been allowed on retail loans
1 comment:
Economic times and other financial news papers/channels have given correct picture that final decision on allowing 3 months moratorium rests with Banks and respective Bank boards have to take final decision. But majority of small borrowers do not read these papers but relaying on TVs and other regional media for news. These regional channels continuously telecasting news stories stressing that borrowers need not pay next 3 months EMI. Bank managements have to come out with their policy early and widely publicize same so that there will not be any confusion. In the present situation it will be highly impossible for borrowers to visit branches and get clarification. Responsibility lies with Banks to clear confusion.
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