{"id":5282,"date":"2020-04-08T16:56:29","date_gmt":"2020-04-08T11:26:29","guid":{"rendered":"http:\/\/blog.ruloans.com\/?p=5282"},"modified":"2020-04-08T16:56:29","modified_gmt":"2020-04-08T11:26:29","slug":"planning-to-postpone-your-emi-payment-because-of-the-moratorium-this-is-how-much-youll-have-to-pay-in-june","status":"publish","type":"post","link":"https:\/\/www.ruloans.com\/blog\/planning-to-postpone-your-emi-payment-because-of-the-moratorium-this-is-how-much-youll-have-to-pay-in-june\/","title":{"rendered":"Planning to postpone your EMI payment because of the Moratorium? This is how much you’ll have to pay in June!"},"content":{"rendered":"\n

Indians are practising\nSocial Distancing because of the Coronavirus scare that has affected over a\nmillion people worldwide. The RBI understanding this situation gave Banks the\noption of deferring dues of loan and credit card users from March 1 to May 31,\n2020.<\/p>\n\n\n\n

Since last week, several\nBanks have provided steps on how you can avail this moratorium benefit. Please\nremember that all credit card dues from the 1st of March until 31st of May,\n2020 will be eligible for the deferment in payments.<\/p>\n\n\n\n

What people usually get confused is the meaning of deferment. It’s not like the Banks are waiving off these payments. You will have to pay these 3 months dues later. What customers don’t realise is the fact that post 3 months, this amount will be very huge along with interest that’s more than 40% per annum!<\/p>\n\n\n\n

Hence keeping this in mind,\nwe have answered some of the most important questions any person with a credit\ncard would ask:<\/p>\n\n\n\n

As a credit card\ncustomer, should I request my Bank for this moratorium period?<\/strong><\/p>\n\n\n\n

Now this is purely your\ndecision. If you don’t have income and money is a problem, then you might\nconsider this option. However if money is not a problem, we would recommend you\nto keep paying off your bills.<\/p>\n\n\n\n

Most Banks have\n“opt-in” facility where the customers can opt for the moratorium.\nSome Banks have an “opt-out” facility where if you don’t pay for 1\nmonth, the Bank automatically understands that you want the moratorium!<\/p>\n\n\n\n

When will I have\nto pay up all the dues once I take the moratorium?<\/strong><\/p>\n\n\n\n

Your June statement will\nreflect the total amount due and the minimum amount due. This means you will\nget all information on the previous outstanding amount, interest levied by the\nBank etc.<\/p>\n\n\n\n

If I decide not\nto pay my dues in April, will the interest on this amount keep compounding\nuntil June?<\/strong><\/p>\n\n\n\n

Now\nthis is the most important question you should be asking. Yes, the amount will\nkeep compounding. Here’s a table to make you understand better:<\/p>\n\n\n\n

As\non March end,<\/p>\n\n\n\n

Credit\ncard bill – 1,00,000 INR<\/p>\n\n\n\n

Interest\ncharged – 3.5%* per month<\/p>\n\n\n\n

Accumulation of Dues <\/strong><\/td> Your Final Bill <\/strong> <\/td><\/tr>
\n Amount due on March (A)\n <\/td>\n 1,00,000\n <\/td><\/tr>
\n Interest accumulated until April End (B)\n <\/td>\n 3,500\n <\/td><\/tr>
\n Amount due on April (C = A + B)\n <\/td>\n 1,03,500  \n <\/td><\/tr>
\n Interest accumulated until May End (D)\n <\/td>\n 3,622\n <\/td><\/tr>
\n Amount due on May (E = C + D)\n <\/td>\n 1,07,122\n <\/td><\/tr>
\n Interest accumulated until May End (F)\n <\/td>\n 3,749\n <\/td><\/tr>
\n Amount due on June (G = E + F)\n <\/td>\n 1,10,871\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The best way to understand\nthis table would be;<\/p>\n\n\n\n