RBI's has extended loan moratorium (suspension) plan for 3 more months on 22nd May 2020.
Earlier on March 27, RBI introduced the loan moratorium scheme for three months until 31st May 2020.
The balance amount of the EMIs suspended can either be adjusted in the remaining tenure of the loan, or be the loan tenure can be extended by the number of months that you want to avail this benefit.
Borrowers have to approach their banks for to opt into this scheme.
The moratorium is aimed at easing the burden of paying EMIs and thus preventing loan from becoming NPA (Non Performing Asset).
The Reserve Bank of India granted a much-needed relief to borrowers by giving three months moratorium on EMI payment on all term loans. This will benefit all home loan, car loan and personal loan borrowers as all these loans are considered term loans. However, loans taken against credit card will not be considered as term loans. The move will effectively benefit the car and bike owners who are currently paying EMIs for their vehicles.