RBI Moratorium: Skipping three EMIs? Here is what you should know

The Reserve Bank of India (RBI) has instructed banks and non-banking financial companies to allow borrowers to get the three-month moratorium. The moratorium is to help people who are facing financial problems due to the lockdown.

Well, here is what you should know before skipping EMIs

One needs to understand that moratorium will only allow you to pause EMI payments for three months, but it does not mean that the loan tenure will only get extended for three months.

RBI has said that interest will continue to increase during the period and will be added to your outstanding loan amount which will increase the interest burden for you over the loan tenure. But, the interest amounts will not be high as only three EMIs are deferred.

This makes it clear that borrower does not gain anything from it, but it will help you in dealing with the financial crunch due to the lockdown