Know-How Moratorium Period on Loan Can Affect Your Loan Monthly EMI

 

The Novel Coronavirus (COVID-19) has left everyone affected. Many people have lost their jobs while some salaried people are getting their wages deducted. This unprecedented situation is forcing people to avoid paying their EMIs. 

And the Central Bank of India has taken cognizance of the situation by allowing a moratorium. It means that you can delay your EMIs during this EMI moratorium period. 

But the question that many people are asking is how the moratorium period can affect the monthly loan EMIs. Let’s know more in this quick post!

What is the EMI moratorium period?

During the EMI moratorium period, you are not required to pay any EMI amount for an ongoing loan and credit card outstanding. But the condition is that the unpaid amount will continue to accrue interest. 

Once the EMI moratorium period ends, you will need to pay the unpaid EMI amount together. You can calculate an amount that you will need to clear after the period is by using the EMI moratorium calculator. 

Now being asked to pay the unpaid EMIs together may not be a good thing. It is especially during this pandemic when your income may still not be stable. And hence, you may find it tough to manage to pay a large amount + interest. 

If you can manage to pay your EMIs, then clearing it every month could be the best thing.     

If you have availed a personal loan and have some credit card outstanding, then you should know that they attract higher interest rates on personal loan. And availing of the EMI moratorium period for even 2-3 months may not be a smart thing. 

But after having said, the EMI moratorium facility may still be suitable for someone with a lower loan amount and manageable interest rates. Based on your case, you can either go for the EMI moratorium or avoid it.

Must Read: Know How You Can Manage Your Loan Monthly EMI In Moratorium Period