In what can be a huge sigh of relief to loan borrowers, the Reserve Bank of India has announced the extension of moratorium on loans for another 3 months i.e till August. RBI Governor Shaktikanta Das on Friday corroborated that the moratorium on loans payment is extended till August. The move is expected to give the much-needed relief to the borrowers.
Earlier in March, the RBI had given a three-month Moratorium on all term loans between March 1, 2020 to May 31, 2020. With the fresh extension, the moratorium on loan payments is applicable till Aug 31, 2020. Since the income of many employees, workers, self-employed and businessmen have been drastically hit due to nationwide lockdown, RBI has decided to extend moratorium for another 3 months.
With this, the repayment schedule and all subsequent due dates and tenure for such loans will be shifted across the board by three more months.
For beginners, moratorium gives EMI holiday which gives relief on EMI repayments of loans to borrowers and the EMIs wouldn’t get deducted from their bank accounts, providing the much-deserved liquidity for the borrowers, individuals. The EMIs would only restart once the moratorium time period expires on Aug 31, 2020.