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This article is more than 1 year old.

Fact check: No, EMIs have not been waived off; only deferred

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As per the announcement, the repayment schedule and all subsequent due dates as also the tenor for all kind of loans will be be shifted across the board by 3 months.

Fact check: No, EMIs have not been waived off; only deferred
The Reserve Bank of India (RBI) on Friday allowed all financial institutions to allow a 3-month moratorium for all term loans in view of coronavirus outbreak and the subsequent lockdown. It is important to understand that this is not a waiver on EMIs, but only a deferment.
As per the announcement, the repayment schedule and all subsequent due dates as also the tenor for all kinds of loans will be shifted across the board by 3 months. The borrowers will not have to pay the loan EMI installments during the moratorium period.
Availing this facility will also not lead to any downgrading on borrowers' credit rating, RBI said. Also, no changes will be made in the existing terms and conditions of the loan.
The RBI policy statement explicitly mentions term loans, which include home loans, personal loans, education loans, auto and any loans which have a fixed tenure. They also include consumer durable loans, such as EMIs on mobiles, fridge, TV, etc.
Meanwhile, RBI also slashed repo and reverse repo rate by 75 bps and 90 bps respectively in order to rescue a slowing economy that has now got caught in coronavirus whirlwind.
For our complete RBI rate cut coverage, click here
Track our full coverage of the coronavirus pandemic here.
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