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RBI's 3-month moratorium: Higher interest if you defer EMI payments

city New Delhi India experts pandemic bill
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New Delhi: Be ready to pay higher interest on your outstanding loan if you decide not to pay EMIs on your home or auto loan for the next three months under a moratorium announced by by the Reserve Bank of India on Friday.

Analysts and experts tracking the sector said that simple interest rate would be calculated by banks for the three-month period in which loan repayment was due but was not paid under the moratorium.

This would be added up into your EMIs at the end of three-month forbearance, raising your monthly bill. So, if you're deferring payment of an EMI of, say ₹1,000, and the bank is charging interest at the rate 10 per cent on outstanding, you will end up paying ₹25 extra on each of the three EMIs that has not been paid during the

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