InvestorQ : I have a home loan with ICICI Bank and they have sent me an email asking me if I want to opt for deferment of the EMIs on my home loan? What do you suggest?
Dia Deshpande made post

I have a home loan with ICICI Bank and they have sent me an email asking me if I want to opt for deferment of the EMIs on my home loan? What do you suggest?

Answer
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Ria Jain answered.
6 months ago


There are a few basic things you need to keep in mind. This is a deferment and not a waiver. Due to the financial constraints that could be created by this lockdown, this is an additional benefit that the government is giving to individual and corporate borrowers. Here is what you should do.

· If you think that your cash flows are not going to be impacted during this March-May period, then you can say no to the EMI deferment. Your home loan EMI will go on as normal. There will not be any change.

· If you think you need a deferment, you can visit the branch of ICICI Bank and ask for the benefit. The decision will be at the discretion of the bank and will not be a concern if your account is not already bad.

· This will apply to all EMIs payable in the March to May period. Each of the EMIs will get postponed by 3 months from the due date.

· The interest will continue to accrue for this period. At the end of 3 months, you can either pay the accrued interest in lump sum or defray it over 3 months. It is your choice.

· There is no penalty for this deferment and there will also be no impact on your CIBIL score nor there will be any credit reporting.

You can take a call based on what is best suited to you.