Today, the discount for not repaying loan EMI will end! Now you can make your EMI cheaper

Loan EMI moratorium Last Date-31 August means that today loan moratorium is expiring. After this, the borrowers will have to pay their EMI on time to avoid default. But customers still have the opportunity to make EMI affordable. Let’s know how …

new Delhi. In this crisis of Corona, the exemption of not paying EMI on the loan given to the common man (RBI Loan Moratorium) is ending today. From September 1, you will have to pay installments on your loan. If you do not pay the installments, the bank can declare you a defaulter and take action. However, the Reserve Bank has allowed loan restructuring to banks. With this, the duration of companies and personal loans can be increased by two years. However, the issue of interest on the loan interest during the moratorium period is still complicated. The Supreme Court is hearing in this case.

What will happen now after the Moratorium is over? Reserve Bank Governor Shaktikanta Das recently said that the loan moratorium was a temporary solution to the lockdown. This was not a permanent fix. Under the new plan, banks will be able to give moratorium to their customers according to their criterion. The expert panel is setting guidelines regarding loan restructuring and increasing moratorium. Based on that, it will be easy for banks to identify which account can be restructured. This criterion will be declared by 6 September.

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You can avail the benefit of loan restructuring – The Reserve Bank of India had said earlier this month that it will facilitate loan restructuring scheme to lenders. This will provide relief to those who have taken loans but are unable to make repairs in the current crisis. Under the restructuring facility, borrowers will be able to schedule loan payments in a new way.
Let us know everything about it …

(1) Who will benefit from loan restructuring and what? The benefit of loan restructuring will be available to all those borrowers who have suffered or are suffering due to coronavirus. These include not only personal lenders taking home loans, vehicle loans or personal loans, but also companies.
That is, if you are unable to repay the home loan or vehicle loan even after the moratorium is over, then you will have to contact your bank. He can restructure the loan on a case-to-case basis. Your loan profile will be seen for this.

By the way, RBI has allowed restructuring the loans of only those borrowers who did not have default of more than 30 days as on March 1, 2020. Which means that coronavirus-induced lockdown is directly affected.

This will prevent old defaulters from adjusting to this scheme. Banks will have to make additional provisions on the remaining debt after restructuring. This means that the resolution plan will be on the new defaulters only.
What is the difference between EMI Moratorium and Loan Restructuring?

EMI Moratorium was exempted from payment of installments. During this time, whatever interest was created, banks would add it to your principal money. When EMI starts, you will have to pay interest on the entire outstanding amount. That is, interest will also be charged on moratorium period.

Restructuring of loans is completely different from this. Banks have got more rights here. He will be able to decide whether to reduce the EMI, increase the loan period, only charge interest, or adjust the interest rate.

(2) Everyone will get the benefit of loan restructuring – this scheme is for all those personal and corporate loans which are in stress due to the current crisis. There are some conditions for this. But financial service providers, MSME borrowers with a total outstanding outstanding of less than Rs 25 crore, farm credit and loans to government institutions will not be eligible for this. Primaries for agriculture will come under the scope of restructuring loans given to agricultural credit societies i.e. PACS or Farmers Service Societies

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