The Reserve Bank of India (RBI), in view of the facilities of the customers at the time of Corona virus epidemic, gave them the facility of loan moratorium, which will expire after 31 August. Now customers are worried about what will happen to their loan after this. But the RBI allayed their concerns and brought in a loan restructuring scheme. In such a situation, there are many questions in the mind of the people that how the restructuring scheme is different from the loan moratorium and how it will affect them. Let us know the answers to all your questions.
What is a loan moratorium period?
Under the loan moratorium facility offered by RBI, customers got the option to postpone EMI. That is, if you have taken any type of loan from the bank, then RBI gave you the option of not paying the EMI of the loan for six months according to your need.
When did moratorium start?
The central bank gave customers the option to postpone their loan EMI for six months – March, April, May, June, July and August.
How many times was it extended?
Keeping in mind the facilities of the customers in view of the corona virus epidemic, the RBI had earlier granted a three-month extension on payment of all term loans from March 1, 2020 to May 31, 2020. This was later extended for an additional three months, until August 2020.
What does it mean to not pursue the moratorium?
In the MPC meeting held on August 6, 2020, the postponement of EMI of the loan was not extended. That is, the period of the Moratorium will end after 31 August. Customers who availed this facility will have to repay their home loan, vehicle loan and personal loan from March as before March.
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Will the credit score be affected after August?
Yes, if you do not pay EMI since September, it will not affect the credit rating of the customers. Previously customers who had taken the facility of moratorium in a period of six months had no effect on their credit score.
What is the convenience for the customers ahead?
The Reserve Bank of India has brought a one-time loan restructuring scheme. Banks also wanted permission to restructure the loan. Under this, banks can now change the loan repayment schedule of their customers. Under this, they can extend the loan period or can also offer a payment holiday.
What is the difference between loan moratorium and restructuring scheme?
The loan moratorium was exempted from non-payment of installments. During this time interest was added to your principal money. At the same time banks got more rights in restructuring scheme. Banks will be able to decide whether to reduce the EMI, extend the loan term, only charge interest, or adjust the interest rate.
Who will get the benefit of loan restructuring scheme?
The Reserve Bank of India introduced a loan restructuring scheme from companies to the general public. Under this, aviation companies, hotels and steel-cement companies, which are suffering due to Corona, can also restructure their loans. This facility is for all personal loans. That is, home loan, car loan, personal loan, or any type of loan that you have taken in your own name. It is known that it has been announced for the first time since the financial crisis of 2008.
How would you benefit from loan restructuring?
If you also take advantage of the loan restructuring scheme, then your loan will not be NPA. The bank will not collect extortion from customers. Your EMI will be reduced and your loan term will also increase.
Will there be exemption in principal in restructuring?
No, under any restructuring, you can only extend the loan period so that the burden of heavy EMI is reduced on you and you pay less installment for a longer period.
How long will you get restructuring facility?
According to RBI, customers have been given time till December. Banks have been asked to do loan restructuring by December. However, the central bank has also said that banks should dispose of it as soon as possible.
