What will the borrowers do when the EMI Moratorium ends in August? Learn the answers to some important questions …


EMI Moratorium news updates: Due to Covid19 Pandemic, during the lockdown, three or three of the three times by the RBI, or six month loan installment moratorium (EMI Moratorium) ) Is going to end on 31 August. There is still a month left to finish it. In such a situation, the question is constantly arising in the minds of the borrowers whether the RBI will take it further?

The reason behind this is that due to the lockdown by the central bank by waiving the loan moratorium, the borrowers who lost jobs and jobs have got a big relief. Along with this, they are also relieved, whose income has decreased due to salary cuts. In a report of the Indian Express in English, these same questions of home loan customers have been answered. Come, know the answers to the questions …

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Can customers reduce interest on loans?

The Reserve Bank has cut the repo rate by about 225 basis points in the last year and a half. Banks and housing loan companies have reduced their interest on new loans from 9 percent to 7 percent now. Despite this, many home loan takers are still paying 8.5 percent or 9 percent interest. These customers should contact their bank or housing finance company and switch to a lower rate. Conversion fees will have to be paid for this. This will make the interest rate similar to the bank’s current loan.

How much will be saved by switching to rate?

For example, if someone’s principal dues are Rs 30 lakh and the remaining period is 15 years, you will have to pay an EMI of Rs 29,540 at 8.5% interest. However, you can reduce the interest rate to 7.4 percent by paying conversion fees, which will cut your EMI by Rs 1900. In addition, you can go from the marginal cost-based lending rate to the repo rate linked rate, to ensure that the time the RBI will cut the repo rate, the bank will give its benefit.

What other steps can you take?

In the time of Kovid-19 epidemic, it is important that you have enough cash for your family for at least 3 to 6 months. It can be in the form of bank savings or fixed deposits. It is important to note that a large portion of savings should be kept in low interest fixed deposits, while paying more interest on home loans.

Currently, State Bank of India (SBI) is paying 5.1% interest on term deposits of 1 to 3 years. However, on a home loan you will have to pay 7 to 8.5 percent. Therefore, do not invest too much in fixed deposits and use it to pay for the loan. This will reduce your monthly EMI outgo or tenure.



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