The Reserve Bank of India (RBI) announced an extension of EMI moratorium by three months, i.e., June, July and August, 2020. The earlier deadline of three-month EMI moratorium was ending on May 31, 2020. This makes it a total of six months for the EMI moratorium.
The extension of three-month moratorium on repayment of term loans by borrowers means that they would not have to pay the loan EMI instalments during the moratorium period.
More details on EMI moratorium @ Banks Links to STOP EMI for 3 Month moratorium
The extension will provide relief to many individuals, especially the self-employed, as they would have found it difficult to service their loans such as car loans, home loans etc due to loss of income during the lockdown period from March 25, 2020. Missing an EMI payment would mean risking adverse action by banks would mean risking adverse action by banks which could have hit their credit score.
As per the previous RBI circular, clarified the following: Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period. Deferred instalments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) Equated Monthly instalments; (iv) credit card dues. It is likely this will continue for the extension of three-month EMI moratorium.