Have EMIs to pay? WAIVER relief for home loan, auto loan takers! No need to pay for 3 months

​EMI payment waiver: RBI has permitted all lending institutions to allow a 3-month "moratorium" on payment of installments on term loans.

Have EMIs to pay? WAIVER relief for home loan, auto loan takers! No need to pay for 3 months
​EMI payment waiver: If you were worried about paying EMIs on home loans, auto loans, personal loans, etc. then you can now relax now. Photo: PTI
Written By: Asit Manohar
Edited By: Harish Dugh
Updated: Fri, Mar 27, 2020
03:14 pm
New Delhi, ZeeBiz WebDesk
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EMI payment waiver: The Reserve Bank of India (RBI) has permitted all lending institutions, which includes banks, NBFC and co-operative banks, to allow a 3-month "moratorium" on payment of installments on term loans. So, if you were worried about paying EMIs on home loans, auto loans, personal loans, etc. then you can now relax as the RBI Governor Shaktikanta Das has announced three months' waiver on term loan EMIs deduction.

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Terming the RBI's decision as a timely, move Veena Sivaramakrishnan, Partner, Shardul Amarchand Mangaldas & Co said, “RBI has broadly delivered on the immediate expectation that the industry has posed to the regulator. Deferment of interest for term loans and working capital for the immediate three month period, without any adverse asset classification, will give the Indian corporates the needed breathing space to mitigate the disruption on their day to day operations in the near future.” 

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Sivaramakrishnan added, “A statement to the public at large that all their deposits, whether it is with the public sector or private sector banks, are safe also provides relief and negates anxiety and panic”.

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Hailing the decision taken by the RBI in the wake of COVID-19 lockdown. Amit Gupta, Co-Founder & CEO, TradingBells said, "Three months moratorium on all term loans is another relief for all including NBFCs, Banks, Corporate and the general public.  It is a very good policy to cheer the market but the problem is that the market has already rallied too much from lower levels ahead of policy and real trend decider for the market will be the trend in new cases of Covid-19 globally and locally."

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Shishir Baijal, Chairman & Managing Director, Knight Frank India said, "The sharp repo rate cut of 75 bps by RBI is a step in the right direction. Sharper cut in reverse repo rate by 90 bps will compel banks to lend instead of parking surplus liquidity with the RBI. The cut in CRR by 100 bps and the TLTRO will infuse liquidity in the systems, which seems to be the crying need of the hour. The moratorium of 3 months for all term loans and deferment of interest on working capital by 3 months will be very helpful at this point when most businesses are unable to have a steady cash flow."

See Zee Business tweet below:

Dhruv Agarwala, Group CEO at Proptiger.com said, "By announcing a moratorium of 3-months on all term loans including home loans the RBI has shown its decisive intent to mitigate what could have been a severe economic fallout of the coronavirus pandemic."

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