Non-banking financial companies start rolling out loan repayment moratorium options

Madurai MP Su. Venkatesan has wondered whether the three-month moratorium on repayment of loans announced by the Reserve Bank of India (RBI) is a relief or a punishment for the common man.

After leaders of various political parties made a demand for a moratorium on loan repayment for three EMIs, the RBI made the announcement. However, the euphoria of the common man over the moratorium announced to benefit those affected by COVID-19 lockdown turned short-lived after the State Bank of India made an announcement on its website explaining its implications.

The bank said that the moratorium for someone who had taken a car loan of ₹6 lakh with a pending repayment for 54 months would mean that he would end up paying an additional amount of ₹19,000, which would be equal to an additional one and a half EMIs, Mr. Venkatesan said in a statement issued here.