{"id":5162,"date":"2020-04-02T19:51:18","date_gmt":"2020-04-02T14:21:18","guid":{"rendered":"http:\/\/blog.ruloans.com\/?p=5162"},"modified":"2020-04-02T19:51:18","modified_gmt":"2020-04-02T14:21:18","slug":"rbi-moratorium-important-announcements","status":"publish","type":"post","link":"https:\/\/www.ruloans.com\/blog\/rbi-moratorium-important-announcements\/","title":{"rendered":"RBI Moratorium Important Announcements"},"content":{"rendered":"\n<p>Reserve Bank of India governor Mr. Shaktikanta Das took a decision of\nallowing a 3 month moratorium on all term loans outstanding installments from\n1st March 2020 to 31st May 2020.<\/p>\n\n\n\n<p>This decision will provide temporary relief to lower and middle class\npeople that can use their EMI savings to bring groceries and other essential\nitems.<\/p>\n\n\n\n<p><strong>What is a\nmoratorium period?<\/strong><\/p>\n\n\n\n<p>A moratorium period takes place when the customer who has taken a loan\ndoesn&#8217;t need to make any EMI repayment. This period is temporary and will be\nchosen by the apex body handling the finances in any country.<\/p>\n\n\n\n<p><strong>This\ndecision is applicable to the following Banks and NBFCs:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Regional\n&amp; PSU Banks<\/li><li>Rural\nbanks<\/li><li>Co-operative\nbanks<\/li><li>Private\nBanks &amp; NBFCs<\/li><\/ul>\n\n\n\n<p><strong>EMI Moratorium &#8211;\nImportant things to know<\/strong><\/p>\n\n\n\n<p><strong>1. Moratorium isn&#8217;t a waiver:<\/strong><\/p>\n\n\n\n<p>With this\ndecision, you have an option of not paying these EMI&#8217;s for 3 months. You will have\nto pay them off later. This does not mean in any way that these 3 months EMIs\nhave been waived off.<\/p>\n\n\n\n<p><strong>2. The Cost related to Moratorium:<\/strong><\/p>\n\n\n\n<p>You cannot call\nthis as a delay. If you think your EMI just gets shifted to 3 months, then you\nare wrong. Not paying your EMI&#8217;s for these months can come at a high cost. We\nsay this because, the EMI amount of these 3 months will be added to your\nprincipal amount.<\/p>\n\n\n\n<p>E.g. If your Home\nloan EMI is for 3 years, then after this moratorium period it won&#8217;t just become\n3 years and 3 months! This is what it will actually become:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  <strong>Outstanding loan term<\/strong>\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  <strong>Moratorium<\/strong>\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  <strong>Revised loan term<\/strong>\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  <strong>Extra EMI added<\/strong>\n  <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  36 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  3 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  40 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  1 month\n  <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  60 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  3 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  65 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  2 months\n  <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  120 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  3 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  128 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  5 months\n  <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  180 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  3 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  191 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  8 months\n  <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">\n  240 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  3 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  258 months\n  <\/td><td class=\"has-text-align-center\" data-align=\"center\">\n  15 months\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>3. What are the Banks doing?<\/strong><strong><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Some banks will assume opt-in by default<\/strong><\/li><li><strong>Some banks will assume opt-out by default<\/strong><\/li><\/ul>\n\n\n\n<p>As a customer, you must phone your Bank and instruct\nthem if you wish to take the moratorium or no. If you don&#8217;t wish to step out of\nthe house because of the Coronavirus scare, then you can visit the Bank&#8217;s\nwebsite, click and say &#8221; I don&#8217;t want the moratorium&#8221;.<\/p>\n\n\n\n<p><strong>Why\nshould you do this?<\/strong><\/p>\n\n\n\n<p>It&#8217;s simple. Because if you don&#8217;t inform the Banks,\nthey will assume by default that you don&#8217;t want the moratorium. Then they will\nauto deduct your EMI every month.<\/p>\n\n\n\n<p><strong>4. Tax implications:<\/strong><strong><\/strong><\/p>\n\n\n\n<p>There&#8217;s always a tax angle here. If you don&#8217;t pay\nthe EMI for these 3 months, then next year you cannot claim these taxes during\nfiling.<\/p>\n\n\n\n<p>So these are some important things you must know\nabout the moratorium period allowed by the RBI.<\/p>\n\n\n\n<p>If you have any questions, we have created a list of\nFAQ&#8217;s that you can look at. We hope all your doubts get solved in it.<\/p>\n\n\n\n<p><strong>FAQs<\/strong><\/p>\n\n\n\n<p><strong>\u00b7 What type of loans will the moratorium period cover?<\/strong><\/p>\n\n\n\n<p>As per the RBI statement, they have mentioned term\nloans that include personal loans, home loans, car loans, education loan and\nany other type of loan that has a fixed tenure. Yes, this includes online loans\nlike consumer durable loans like loans taken for smart-phones, TV, and Fridge.<\/p>\n\n\n\n<p><strong>\u00b7 Will this moratorium period cover my credit card payments?<\/strong><\/p>\n\n\n\n<p>As per the RBI statement, credit card dues must also\nbe covered under the moratorium period. For the next 3 months, any money that\nyou borrow using your credit card wouldn&#8217;t be required to be paid. After this\nperiod ends, you will have to pay the whole bill. This will only be a temporary\nrelief.<\/p>\n\n\n\n<p>But if you ask us, we wouldn&#8217;t advise it if u have a\ngood balance available. If you accept this moratorium, Banks will charge you\nthe interest amount outstanding every month. This is just a relief so that you\nwill not be considered as a Defaulter.<\/p>\n\n\n\n<p><strong>\u00b7&nbsp;My EMI is due soon. Will the payment be automatically deducted from my savings account?<\/strong><\/p>\n\n\n\n<p>Your Bank will send you a process note in a\nprescribed format. If you opt for this note, then only will you be considered\neligible for the moratorium? Else, your Bank will continue deducting the EMI as\na routine payment from your account.<\/p>\n\n\n\n<p><strong>\u00b7 Is this a waiver of my 3 months EMI or a deferment of EMIs?<\/strong><\/p>\n\n\n\n<p>Please don&#8217;t be confused about these terms. RBI is\nmerely delaying your EMI payment. You will have to pay these EMIs as well once\nthe moratorium period ends.<\/p>\n\n\n\n<p>If you wish to apply for a loan like a credit card or an instant personal loan then you can do so by applying on the Ruloans web portal. <a href=\"https:\/\/www.ruloans.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Click Here (opens in a new tab)\">Click Here<\/a><\/p>\n\n\n\n<p><strong>\u00b7 Is the moratorium period only for principal amounts or also includes interest?<\/strong><\/p>\n\n\n\n<p>Please understand that you can reschedule the\nprincipal amount for a period of 3 months that starts from March 1 to May 31,\n2020.&nbsp;<\/p>\n\n\n\n<p><strong>E.g.\nIf your last installment of the loan is due for payment on 1st March 2020, it\nwill then become payable on 1st June 2020.<\/strong><\/p>\n\n\n\n<p>For all your EMI based loans, 3 EMIs that are due\nbetween 1st March to May 31st, 2020 will be extended by 3 months. But these\nEMIs of 3 months will have to be repaid during the extended period.<\/p>\n\n\n\n<p><strong>\u00b7 What is the treatment that will take place for interest on working capital facilities?<\/strong><\/p>\n\n\n\n<p>Please note that any recovery of the Interest\napplied to cash credit\/overdraft on 31st March, 30th April and 31st May 2020 is\nbeing considered as \u2018deferred\u2019. However, the entire interest will be recovered\nalong with the interest being applied on 30th June 2020. So you will have to\npay all these 3 months&#8217; interest amount later.<\/p>\n\n\n\n<p><strong>\u00b7 If my bank suspends my EMIs, will non-payment of these EMIs impact on my credit score?<\/strong><\/p>\n\n\n\n<p>No. Once the Bank approves suspension of EMI\npayment, your credit score will not be impacted. Be rest assured.<\/p>\n\n\n\n<p><strong>\u00b7 Does this mean Individuals &amp; businesses with huge loans should take this benefit?<\/strong><\/p>\n\n\n\n<p>As mentioned above, your credit score won&#8217;t be affected.\nBut we suggest that you opt for this option only when your cash flow or income\nsource is affected. You must remember that the interest will continue to be\naccrued even if you don&#8217;t pay now. Hence the cost will increase at the end of\nthese 3 months for you.<\/p>\n\n\n\n<p><strong>E.g.<\/strong><\/p>\n\n\n\n<p><strong>Loan\noutstanding &#8211; 1,00,000 INR<\/strong><\/p>\n\n\n\n<p><strong>Interest\nrate &#8211; 12% or 10%<\/strong><\/p>\n\n\n\n<p><strong>Interest\namount &#8211; 1,000 INR or 833 INR<\/strong><\/p>\n\n\n\n<p>If you opt for the moratorium of 3 months, you still\nwill be liable to pay the interest @ 12% for these 3 months = 3,030.10 INR\n&amp; @10% interest it will be 2,521 INR for 3 months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reserve Bank of India governor Mr. Shaktikanta Das took a  [&#8230;]<\/p>\n","protected":false},"author":1,"featured_media":5163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[98],"tags":[978],"class_list":["post-5162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rbi-moratorium","tag-rbi-moratorium"],"rttpg_featured_image_url":{"full":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"landscape":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"portraits":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"thumbnail":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-150x150.jpg",150,150,true],"medium":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-300x103.jpg",300,103,true],"large":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"1536x1536":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"2048x2048":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"blog-large":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-669x246.jpg",669,246,true],"blog-medium":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-320x202.jpg",320,202,true],"recent-posts":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-700x246.jpg",700,246,true],"recent-works-thumbnail":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-66x66.jpg",66,66,true],"fusion-200":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-200x69.jpg",200,69,true],"fusion-400":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-400x138.jpg",400,138,true],"fusion-600":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-600x207.jpg",600,207,true],"fusion-800":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"fusion-1200":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"portfolio-full":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",714,246,false],"portfolio-one":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-540x246.jpg",540,246,true],"portfolio-two":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-460x246.jpg",460,246,true],"portfolio-three":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-300x214.jpg",300,214,true],"portfolio-five":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts-177x142.jpg",177,142,true],"menu-24x24":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",24,8,false],"menu-36x36":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",36,12,false],"menu-48x48":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",48,17,false],"web-stories-poster-portrait":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",640,221,false],"web-stories-publisher-logo":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",96,33,false],"web-stories-thumbnail":["https:\/\/www.ruloans.com\/blog\/wp-content\/uploads\/2020\/04\/Corona-related-info-posts.jpg",150,52,false]},"rttpg_author":{"display_name":"admin","author_link":"https:\/\/www.ruloans.com\/blog\/author\/admin\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.ruloans.com\/blog\/rbi-moratorium\/\" rel=\"category tag\">RBI Moratorium<\/a>","rttpg_excerpt":"Reserve Bank of India governor Mr. Shaktikanta Das took a 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