InvestorQ : What happens to the 3-month EMI moratorium that banks have offered, which expires on May 31? Is it likely to be extended?
Crowny Pinto made post

What happens to the 3-month EMI moratorium that banks have offered, which expires on May 31? Is it likely to be extended?

Answer
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5 months ago


While there has been no confirmation from the government or the RBI, it now appears that the moratorium could most likely be extended by another 3 months. Therefore, instead of May 31, the moratorium may now expire only on August 31.

While the RBI or the government is yet to confirm on this issue, the IBA (Indian Banks Association) has been demanding that the government announce this measure soon. Since the lockdown has now been extended till May 17, it is felt that an extended moratorium will benefit the borrowers and the bankers.

In March, the RBI had announced a deferral of EMI payments, although interest would still accrue.

The EMI moratorium has become popular among retail borrowers and even corporate borrowers although it only allows a deferral of loan instalments. It is being felt that with the lockdown extended till May 17, it would not really make sense to call off the moratorium on May 31 as it may not serve the core purpose.