The Reserve Bank of India today has extended the loan moratorium period by another three months until 31 August. The central bank of India had earlier provided a moratorium on all term loans due between 1 March and 31 May 2020. "The 3-month EMI moratorium is a welcome move for those customers whose short-term cash flows are adversely affected by the coronavirus pandemic," Kunal Varma, CBO and Co-Founder, MoneyTap told.
Should you opt for it? If you decide not to pay EMIs on your home loan or auto loan for the next three months, be ready to pay higher interest on your outstanding loan amount.
The banks will charge the interest rate for the three-month period in which loan repayment is due but is not paid under the moratorium.