Credit Cards, Interest – All Your Queries About 3-Month Loan Deferment Answered
Bhubaneswar: Amid the lockdown, the Reserve Bank of India (RBI) has given a breather to citizens and businesses to defer their loan payments by three months. Here is a list of popular queries:
Is it a loan waiver? No, it is a deferment. You will have to pay your dues. It is a 3-months moratorium.
Will I be labelled a defaulter? No, you won’t be.
Will interest be charged for the 3 months? Yes, interest will be charged. This is why experts recommend repaying on time if you can.
I can pay my EMIs now. Should I defer? It is recommended that you don’t because you will charged interest on it. If you can spare the cash, then pay.
Are credit cards covered? Yes, credit cards, home loans, auto loans, education loans, agricultural term loans, retail and crop loans are covered. However, be careful of the high interests on credit cards which will be charged.
Are all banks and NBFCs covered? “All commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020,” said RBI. Hence the decision is pending on individual banks. Check with your loan provider before deferring.
Do I need to approach my bank for deferment? Yes, first check whether your bank allows or not. Also, if you have auto-debit, then you might be charged a penalty that can be reversed later.
