Vipul PatelThese are tough times for individuals and businesses, given the cash crunch they face due to the nationwide lockdown declared by the government to contain the Corona Virus Disease (COVID-19). The Reserve Bank of India’s (RBI’s) move to allow a moratorium on three EMIs relating to home, vehicle, education, consumer durable loans as well as to credit card customers, will offer them a lot of relief. However, since it is a deferment and not a waiver, the interest payable over the total tenure will go up if you opt for it. It’s optional and the consumer has to make the choice of opting for or out of it.Here are scenarios to know how you can offset the rise in interest by increasing your EMI later.Close Scenario 1: Moratorium not availed related news Coronavirus effect | CMS to deliver cash at home, partner with banks RBI eases access to domestic foreign exchange derivative markets To understand the impact of higher interest payment after the moratorium, let’s first understand how your repayment schedule and EMIs will look like (assuming your home loan is linked to the repo rate) if you do not opt for a moratorium. Here, considering the 0.75 per… Read full this story
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