Go Back to Main blog page
Myth Vs Facts - RBI COVID-19 Moratorium
2
min read
39 views
1487 Likes
To address this stress in the financial sector caused by COVID-19, several measures have been taken by RBI as a part of its Seventh Bi-monthly Policy. These measures include reduction in repo rate and reverse repo rate, injected liquidity, moratorium on term loans, defer interest payments on working capital and easing of working capital financing.
Objective:
Objective of RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 stating moratorium on EMI payment for term loans/ deferment of interest in working capital facilities is to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses.
Myths Vs Fact
- The lending institutions have been permitted to allow extending moratorium for another three months. i.e. from 1st June, 20 till 31st Aug, 20
This is a relaxation offered by RBI not a compulsion. Neither is it guidance by the RBI to the lenders, nor is it a leeway granted by the RBI to the borrowers to delay or defer the repayment of the loans. Borrower can choose to continue to pay EMIs if income flows can be managed.
- Moratorium is a sort of granting of a oliday it is a repayment holiday where the borrower is granted an option to not pay during the moratorium period.
It is a restructuring of the terms of the loan and impacts the existing loan tenure which is shifted across by another three months after the moratorium period. In certain cases of long tenure loans say, home loans, the additional burden on the borrower due to the accrued interest and interest on such interest would cause the amount to rise so much that paying the accumulated interest in one go may not be feasible. This may require the lender to convert the accrued interest also into instalments and converting such accrued interest into manageable instalments is the lender prudential call.
For eg:
Principal Outstanding - INR 10,00,000 as on 1st June 0
Current Int rate - 9%
Current EMI - INR 10,143
Pending Tenure - 180 months
Int accrued for 3 months - INR 22,669
Principal Outstanding after 3 months - INR 10,22,669 as on 31st Aug 0
- Moratorium is a benefit offered for another 3 months. Emi Moratorium is not a saving on your interest costs, though, it is a top up on existing loan as 3 months interest cost is added & liability is increased. As explained above, 22500/- is added cost on availing moratorium. However, if same is not availed, the existing loan is not impacted and outflow remains same as earlier.
The moratorium will affect the existing loan tenure and the interest for the ayment holiday will accrue. Hence, it is advisable for borrower to pay the instalment henceforth, avoiding the increased loan burden.
Tags
Latest Blogs
Financial Education
Understanding the Different Kinds of Loan Frauds and Staying Vigilant
Read Blog
IIFL Home Loans | Aug 04 7:08 AM
30 views
|
0 Likes
Financial Education
64 views
|
0 Likes
Financial Education
Unlock the Value of Your Property with a Loan: No ITR Required
Read Blog
IIFL Home Loans | May 19 6:42 AM
1 view
|
0 Likes
Financial Education
How to Improve Your Credit Score Before Applying for Home Loan
Read Blog
IIFL Home Loans | Apr 12 6:27 AM
130 views
|
0 Likes
Financial Education
1 view
|
0 Likes
Financial Education
Investment In NCD May Manifest A Good And Safe Deal Than Equities!
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
643 views
|
0 Likes
Financial Education
NCD Vs FD: What Is The Difference Between The Two?
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
1 view
|
0 Likes
Financial Education
How can Current Loans and Credit Report- CIBIL impact your loan eligibility?
Read Blog
IIFL Home Loans | Nov 02 9:30 AM
62 views
|
0 Likes
Financial Education
5 Growing Job Opportunities In Fintech Domain
Read Blog
IIFL Home Loans | Sep 14 8:53 AM
98 views
|
0 Likes
Financial Education
Impact Of COVID - 19 On Finance Industry
Read Blog
IIFL Home Loans | May 27 2:45 PM
59 views
|
0 Likes
Financial Education
Myth Vs Facts - RBI COVID-19 Moratorium
Read Blog
IIFL Home Loans | May 27 2:45 PM
39 views
|
0 Likes
Financial Education
5 Books You Can Read While At Home If You Are Bored
Read Blog
IIFL Home Loans | Apr 27 4:30 PM
60 views
|
0 Likes
Financial Education
All about the Angikaar Campaign - What is it, How Does it Work, Benefits & More
Read Blog
IIFL Home Loans | Jan 03 5:30 PM
82 views
|
0 Likes
Financial Education
PMAYU: Your Dream Home Just Got Bigger by 33%
Read Blog
IIFL Home Loans | Jun 13 3:30 PM
105 views
|
0 Likes
Financial Education
Best Ways To Improve Your Home On Low Budget
Read Blog
IIFL Home Loans | May 23 6:30 PM
28 views
|
0 Likes
Financial Education
5 Things to Consider Before Refinancing a Home Loan
Read Blog
IIFL Home Loans | Feb 21 3:30 PM
87 views
|
0 Likes
Financial Education
Recruitment Trends in Housing Finance Sector
Read Blog
IIFL Home Loans | Feb 05 11:00 AM
23 views
|
0 Likes
Financial Education
Smart Cities of India- Mission 2022
Read Blog
IIFL Home Loans | Jan 29 6:15 PM
58 views
|
0 Likes
Financial Education
37 views
|
0 Likes
Financial Education
The Benefits of PMAY
Read Blog
IIFL Home Loans | Jan 23 4:15 PM
336 views
|
0 Likes
Financial Education
Safety Tips for Homes
Read Blog
IIFL Home Loans | Jan 23 3:45 PM
2,324 views
|
0 Likes
Financial Education
Vastu and Astrology Tips for Your Home Design
Read Blog
IIFL Home Loans | Jan 23 2:15 PM
99 views
|
0 Likes
Financial Education
Read About Home Decor Ideas for Small Spaces - IIFL Finance Blogs
Read Blog
IIFL Home Loans | Dec 28 3:00 PM
21 views
|
0 Likes
Financial Education
Read About DDA Aawasiya Yojana 2017
Read Blog
IIFL Home Loans | Dec 28 12:15 PM
20 views
|
0 Likes
Financial Education
16 views
|
0 Likes
Financial Education
Read More About CLSS Scheme of PMAY
Read Blog
IIFL Home Loans | Dec 27 2:45 PM
57 views
|
0 Likes
Financial Education
Rent Vs Buy: To Rent or Buy a Home?
Read Blog
IIFL Home Loans | Dec 19 11:45 AM
23 views
|
0 Likes
Financial Education
Own a Home with Pradhan Mantri Awas Yojana
Read Blog
IIFL Home Loans | Dec 19 11:00 AM
71 views
|
0 Likes
Financial Education
What is the perfect CIBIL score for a home loan?
Read Blog
IIFL Home Loans | Dec 04 12:15 PM
501 views
|
0 Likes
Financial Education
Things That Can Go Wrong With Your CIBIL Report
Read Blog
IIFL Home Loans | Dec 04 11:15 AM
36 views
|
0 Likes
Financial Education
Is your CIBIL score getting you down? Cibil Score
Read Blog
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Financial Education
How to get a personal loan with low CIBIL score?
Read Blog
IIFL Home Loans | Dec 04 10:30 AM
193 views
|
0 Likes
Financial Education
Why You Should Consider Raj Nagar Extension for an Investment?
Read Blog
IIFL Home Loans | Nov 15 12:45 PM
31 views
|
0 Likes
Financial Education
What are the Requirements for availing PMAY Subsidy?
Read Blog
IIFL Home Loans | Oct 09 5:00 PM
66 views
|
0 Likes
Financial Education
Dwarka Expressway: Booming High
Read Blog
IIFL Home Loans | Sep 01 1:15 PM
29 views
|
0 Likes
Financial Education
Independence Day Anniversary: Housing Sector on a Path to Development
Read Blog
IIFL Home Loans | Aug 24 12:30 PM
17 views
|
0 Likes
Financial Education
Franking and Stamping: What the difference?
Read Blog
IIFL Home Loans | Aug 14 2:45 PM
94 views
|
0 Likes
Financial Education
Customer Service Department Driving Revenue & Profitability
Read Blog
IIFL Home Loans | Jul 07 2:45 PM
58 views
|
0 Likes
Financial Education
Challenges towards Housing for All by 2022
Read Blog
IIFL Home Loans | Jul 07 11:15 AM
66 views
|
0 Likes
Financial Education
Policies Increase the Efficiency of the Work Process!
Read Blog
IIFL Home Loans | Jun 01 12:45 PM
22 views
|
0 Likes
Financial Education
Do You Know the 6 Types of Mortgages?
Read Blog
IIFL Home Loans | Apr 27 2:00 PM
26 views
|
0 Likes
Financial Education
Appraisals On Your Way: 5 Smart Ways To Invest Your Annual Bonus
Read Blog
IIFL Home Loans | Apr 27 11:30 AM
23 views
|
0 Likes
Financial Education
What Are The Benefits Of Buying A House in 20s
Read Blog
IIFL Home Loans | Apr 06 5:45 PM
31 views
|
0 Likes
Financial Education
How Union Budget 2017-18 Benefits India Middle Class Population
Read Blog
IIFL Home Loans | Mar 30 12:30 PM
23 views
|
0 Likes
Financial Education
What is The Significance Of A Credit Score For Buying A House?
Read Blog
IIFL Home Loans | Mar 10 9:45 AM
22 views
|
0 Likes
Financial Education
What Is The Right Age To Buy A Home?
Read Blog
IIFL Home Loans | Jan 31 4:30 PM
35 views
|
0 Likes
Financial Education
Everything You Need to Know About Your CIBIL Score
Read Blog
IIFL Home Loans | Nov 02 12:00 PM
186 views
|
0 Likes
Financial Education
10 Simple Ways to Make Your Home a Happier Place
Read Blog
IIFL Home Loans | Oct 29 2:30 PM
174 views
|
0 Likes
Financial Education
Hacked!!! Why Indian Sailors Get a Loan Rejection?
Read Blog
IIFL Home Loans | Oct 21 2:15 PM
34 views
|
0 Likes
Financial Education
77 views
|
0 Likes
Financial Education
You Need Good CIBIL Score for Home Loans
Read Blog
IIFL Home Loans | Aug 28 4:00 PM
229 views
|
0 Likes
Financial Education
The Importance of Home in Your Daily Lives
Read Blog
IIFL Home Loans | Jul 29 3:30 PM
41 views
|
0 Likes
Financial Education
Kushal Bhartiyo! Labh Uthaye Pradhan Mantri Awas Yojana Ka Aur Banaye Apna Khud ka Ghar
Read Blog
IIFL Home Loans | May 15 3:15 PM
65 views
|
0 Likes
Financial Education
This Festive Season, zaadi from Excess Cost & Give Your Home Smart Look
Read Blog
IIFL Home Loans | Apr 23 9:45 AM
19 views
|
0 Likes
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report
Most Read Blogs
Financial Education
10 Simple Ways to Make Your Home a Happier Place
Read Blog
IIFL Home Loans | Oct 29 2:30 PM
174 views
|
0 Likes
Financial Education
5 Books You Can Read While At Home If You Are Bored
Read Blog
IIFL Home Loans | Apr 27 4:30 PM
60 views
|
0 Likes
Financial Education
5 Growing Job Opportunities In Fintech Domain
Read Blog
IIFL Home Loans | Sep 14 8:53 AM
98 views
|
0 Likes
Financial Education
5 Things to Consider Before Refinancing a Home Loan
Read Blog
IIFL Home Loans | Feb 21 3:30 PM
87 views
|
0 Likes
Financial Education
All about the Angikaar Campaign - What is it, How Does it Work, Benefits & More
Read Blog
IIFL Home Loans | Jan 03 5:30 PM
82 views
|
0 Likes
Financial Education
Appraisals On Your Way: 5 Smart Ways To Invest Your Annual Bonus
Read Blog
IIFL Home Loans | Apr 27 11:30 AM
23 views
|
0 Likes
Financial Education
Best Ways To Improve Your Home On Low Budget
Read Blog
IIFL Home Loans | May 23 6:30 PM
28 views
|
0 Likes
Financial Education
Challenges towards Housing for All by 2022
Read Blog
IIFL Home Loans | Jul 07 11:15 AM
66 views
|
0 Likes
Financial Education
Customer Service Department Driving Revenue & Profitability
Read Blog
IIFL Home Loans | Jul 07 2:45 PM
58 views
|
0 Likes
Financial Education
Do You Know the 6 Types of Mortgages?
Read Blog
IIFL Home Loans | Apr 27 2:00 PM
26 views
|
0 Likes
Financial Education
Dwarka Expressway: Booming High
Read Blog
IIFL Home Loans | Sep 01 1:15 PM
29 views
|
0 Likes
Financial Education
Everything You Need to Know About Your CIBIL Score
Read Blog
IIFL Home Loans | Nov 02 12:00 PM
186 views
|
0 Likes
Financial Education
Franking and Stamping: What the difference?
Read Blog
IIFL Home Loans | Aug 14 2:45 PM
94 views
|
0 Likes
Financial Education
Hacked!!! Why Indian Sailors Get a Loan Rejection?
Read Blog
IIFL Home Loans | Oct 21 2:15 PM
34 views
|
0 Likes
Financial Education
77 views
|
0 Likes
Financial Education
How can Current Loans and Credit Report- CIBIL impact your loan eligibility?
Read Blog
IIFL Home Loans | Nov 02 9:30 AM
62 views
|
0 Likes
Financial Education
How to get a personal loan with low CIBIL score?
Read Blog
IIFL Home Loans | Dec 04 10:30 AM
193 views
|
0 Likes
Financial Education
How to Improve Your Credit Score Before Applying for Home Loan
Read Blog
IIFL Home Loans | Apr 12 6:27 AM
130 views
|
0 Likes
Financial Education
How Union Budget 2017-18 Benefits India Middle Class Population
Read Blog
IIFL Home Loans | Mar 30 12:30 PM
23 views
|
0 Likes
Financial Education
Impact Of COVID - 19 On Finance Industry
Read Blog
IIFL Home Loans | May 27 2:45 PM
59 views
|
0 Likes
Financial Education
Independence Day Anniversary: Housing Sector on a Path to Development
Read Blog
IIFL Home Loans | Aug 24 12:30 PM
17 views
|
0 Likes
Financial Education
Investment In NCD May Manifest A Good And Safe Deal Than Equities!
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
643 views
|
0 Likes
Financial Education
Is your CIBIL score getting you down? Cibil Score
Read Blog
IIFL Home Loans | Dec 04 10:45 AM
1 view
|
0 Likes
Financial Education
Kushal Bhartiyo! Labh Uthaye Pradhan Mantri Awas Yojana Ka Aur Banaye Apna Khud ka Ghar
Read Blog
IIFL Home Loans | May 15 3:15 PM
65 views
|
0 Likes
Financial Education
64 views
|
0 Likes
Financial Education
Myth Vs Facts - RBI COVID-19 Moratorium
Read Blog
IIFL Home Loans | May 27 2:45 PM
39 views
|
0 Likes
Financial Education
NCD Vs FD: What Is The Difference Between The Two?
Read Blog
IIFL Home Loans | Nov 23 4:12 AM
1 view
|
0 Likes
Financial Education
Own a Home with Pradhan Mantri Awas Yojana
Read Blog
IIFL Home Loans | Dec 19 11:00 AM
71 views
|
0 Likes
Financial Education
37 views
|
0 Likes
Financial Education
PMAYU: Your Dream Home Just Got Bigger by 33%
Read Blog
IIFL Home Loans | Jun 13 3:30 PM
105 views
|
0 Likes
Financial Education
Policies Increase the Efficiency of the Work Process!
Read Blog
IIFL Home Loans | Jun 01 12:45 PM
22 views
|
0 Likes
Financial Education
Read About DDA Aawasiya Yojana 2017
Read Blog
IIFL Home Loans | Dec 28 12:15 PM
20 views
|
0 Likes
Financial Education
Read About Home Decor Ideas for Small Spaces - IIFL Finance Blogs
Read Blog
IIFL Home Loans | Dec 28 3:00 PM
21 views
|
0 Likes
Financial Education
Read More About CLSS Scheme of PMAY
Read Blog
IIFL Home Loans | Dec 27 2:45 PM
57 views
|
0 Likes
Financial Education
Recruitment Trends in Housing Finance Sector
Read Blog
IIFL Home Loans | Feb 05 11:00 AM
23 views
|
0 Likes
Financial Education
16 views
|
0 Likes
Financial Education
Rent Vs Buy: To Rent or Buy a Home?
Read Blog
IIFL Home Loans | Dec 19 11:45 AM
23 views
|
0 Likes
Financial Education
Safety Tips for Homes
Read Blog
IIFL Home Loans | Jan 23 3:45 PM
2,324 views
|
0 Likes
Financial Education
Smart Cities of India- Mission 2022
Read Blog
IIFL Home Loans | Jan 29 6:15 PM
58 views
|
0 Likes
Financial Education
The Benefits of PMAY
Read Blog
IIFL Home Loans | Jan 23 4:15 PM
336 views
|
0 Likes
Financial Education
The Importance of Home in Your Daily Lives
Read Blog
IIFL Home Loans | Jul 29 3:30 PM
41 views
|
0 Likes
Financial Education
Things That Can Go Wrong With Your CIBIL Report
Read Blog
IIFL Home Loans | Dec 04 11:15 AM
36 views
|
0 Likes
Financial Education
This Festive Season, zaadi from Excess Cost & Give Your Home Smart Look
Read Blog
IIFL Home Loans | Apr 23 9:45 AM
19 views
|
0 Likes
Financial Education
Understanding the Different Kinds of Loan Frauds and Staying Vigilant
Read Blog
IIFL Home Loans | Aug 04 7:08 AM
30 views
|
0 Likes
Financial Education
Unlock the Value of Your Property with a Loan: No ITR Required
Read Blog
IIFL Home Loans | May 19 6:42 AM
1 view
|
0 Likes
Financial Education
Vastu and Astrology Tips for Your Home Design
Read Blog
IIFL Home Loans | Jan 23 2:15 PM
99 views
|
0 Likes
Financial Education
1 view
|
0 Likes
Financial Education
What Are The Benefits Of Buying A House in 20s
Read Blog
IIFL Home Loans | Apr 06 5:45 PM
31 views
|
0 Likes
Financial Education
What are the Requirements for availing PMAY Subsidy?
Read Blog
IIFL Home Loans | Oct 09 5:00 PM
66 views
|
0 Likes
Financial Education
What is the perfect CIBIL score for a home loan?
Read Blog
IIFL Home Loans | Dec 04 12:15 PM
501 views
|
0 Likes
Financial Education
What Is The Right Age To Buy A Home?
Read Blog
IIFL Home Loans | Jan 31 4:30 PM
35 views
|
0 Likes
Financial Education
What is The Significance Of A Credit Score For Buying A House?
Read Blog
IIFL Home Loans | Mar 10 9:45 AM
22 views
|
0 Likes
Financial Education
Why You Should Consider Raj Nagar Extension for an Investment?
Read Blog
IIFL Home Loans | Nov 15 12:45 PM
31 views
|
0 Likes
Financial Education
You Need Good CIBIL Score for Home Loans
Read Blog
IIFL Home Loans | Aug 28 4:00 PM
229 views
|
0 Likes
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.