EMIs Put on Hold, Interest Rate Cut: RBI
GUWAHATI: The government have put a moratorium on all banks loans for 3 months, which means a borrower will not have to pay the equal monthly installments for the next 3 months.
The 3 month moratorium on repayment of term loans by borrowers means that they would not have to pay the loan EMI instalments during the moratorium period.
RBI Governor Shaktikanta Das said, "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) (lending 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."
Another important but expected announcement was about slashing repo rate by 75 basis points or 0.75 per cent from 5.15 per cent to 4.4 per cent.
A moratorium of this nature would normally imply that individuals' EMI repayments of loans taken would not be deducted from their bank accounts till the moratorium period is over.
RBI Governor Shaktikanta Das