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Six things to know about RBI's moratorium on EMI

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In a relief to borrowers who could be facing liquidity issues in paying their equated monthly installments (EMI) amid the nationwide lockdown, the Reserve Bank of India (RBI) on Friday allowed banks and other financial institutions to provide a moratorium of three months to all term loan borrowers.

The RBI has also instructed credit information companies to ensure that the credit score of the borrowers does not get impacted due to moratorium.

Mint explains what it means for borrowers: What type of loans will benefit from the moratorium? As per the RBI circular, banks and other financial institutions are permitted to provide a moratorium of three months for all term loan installments which are due for payment between 1 March and 31 May.

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