A BRIEF OVERVIEW ON RBI ANNOUNCEMENT REGARDING EMI MORATORIUM

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Kenstone Capital
Debt Consulting

• Cibil/Credit Score Repair Agency

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A BRIEF OVERVIEW ON RBI ANNOUNCEMENT REGARDING
EMI MORATORIUM

• As we all know, the Reserve Bank of India (RBI)
  allowed all financial institutions to grant a
  three-month moratorium on all term loans due to
  the outbreak of COVID-19 and the subsequent
  lockdown.
• The Reserve Bank of India (RBI) has decided to
  amortize both borrowers and lenders against the
  unprecedented disruption caused by the Covid-19
  outbreak, giving consumers a three-month grace
  period on loan repayments. It also provided banks
  with breathing space for default tagging in the
  event of customers missing payments.

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• Q How Banks will process?
• A All banks will have to discuss the moratorium
  and have a decision approved by their board of
  directors. Once approved, customers can be
  contacted to notify them of the moratorium.
• Q What type of banks can offer their clients
  this deferment?
• A All commercial banks which include
• National rural banks
• Small finance banks
• Local area banks
• Cooperative banks
• All-India Financial Institutions
• Housing finance companies
• Microfinance institutions

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• Q Is it a waiver of the EMIs or a deferment of
  the EMIs?
• A This is not a waiver, but a hold. RBI
  suggested that the repayment schedule and all
  subsequent due dates, as well as the tenor for
  such loans will be extended by three months
  across the board.
• Q Does this moratorium extend to both principal
  and interest?
• A Yes, yes. It is. If you are informed by your
  bank, you will be excluded from payment of the
  entire EMI, including payment and interest, for a
  period of three months. This will refer to all
  loans outstanding as of 1 March 2020.

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• Q What kind of loans is covered by this
  moratorium?
• A The RBI policy statement specifically
  addresses term loans, which include
• Home loans
• Personal loans
• Education loans
• Auto loans
• Other fixed-term loans include long-term
  consumer loans, such as mobile EMIs,
  refrigerators, TVs, etc.

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• Q Does the moratorium cover the use of credit
  cards?
• A As credit cards are known as revolving credit
  and not term loans, they are not subject to a
  moratorium.
• Q I took a project loan to set up a company. Do
  I need to pay for my EMI?
• A A moratorium has been issued on any loan known
  as a term loan. When the bank is persuaded that
  you are not in a position to pay the EMIs, you
  will obtain a deferral.

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• Q What has been announced by RBI for businesses?
• A The RBI has allowed interest payments to be
  deferred for all working capital loans taken by
  businesses. This will apply with respect to all
  operating capital assets pending as of 1 March
  2020. Accumulated interest will be accrued for
  the duration after the expiry of the deferment
  period. The moratorium / deferral will not be
  viewed as a modification in the terms and
  conditions of the loan agreements and will not
  result in the reduction of asset classification.
• Most of the individuals will benefit from the
  RBIs relaxation of loan repayment which include
  retail borrowers, micro, small and medium
  enterprises and large companies

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• Do you want to know more about RBI ANNOUNCEMENT
  REGARDING EMI MORATORIUM
• Kenstone Capital Pvt Ltd.
• Contact us 9538977129
• Visit our website https//www.kenstonecapital.in
  /
• Email info_at_kenstonecapital.in

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• Have a look at few questions and answers
  related to this EMI holiday which may rise in the
  public minds and get some meaningful insights!
• Q My EMI is due soon. Will the payment not to be
  deducted from my account?
• A The RBI has only allowed banks to permit a
  moratorium. Different banks would need to require
  EMIs to be suspended which means unless you have
  explicit permission from your bank, your EMIs
  will still be deducted from your account.
• Q How can I Know, whether my EMI was suspended
  or not?
• A The RBI has not yet given any detailed
  guidelines on this. Once the guide lines are
  released, there will be more precise
  clarification on this.