In a bid to ease the lack of liquidity that borrowers might face amid the nationwide lockdown to contain the spread of the covid-19 pandemic, the Reserve Bank of India (RBI) on 27 March allowed banks and financial institutions to offer a three-month moratorium on term loans and credit card bills.
During this period, borrowers can opt to not pay their equated monthly instalments (EMIs) or credit card dues. Disha Sanghvi asks four industry experts what the possible deferment of EMIs means and whether it makes sense for borrowers to opt for the moratorium The cost of deferring the payment can be very high The covid-19 moratorium offered by lenders looks enticing but could add a significant burden to your interest.