Loan Moratorium Over on 31st August 2020, What is Loan Restructuring Scheme and How to Avail it?
Reserve Bank of India has provided a big relief to the customers who availed loans before the Coronavirus epidemic and during the lockdown gave them the facility of loan moratorium, Firstly Loan moratorium was offered for March to May month which was further extended by 3 months i.e. from June to August.
The said relief provided by RBI in the form of loan moratorium is going to expire and over on 31st August 2020. From 1st September 2020, customers will have to repay their EMI loan dues. Now in this case customers are worried about what will happen to their loan after the end of the loan moratorium period. However, the RBI addressed their concerns and provided them another relier in the form of a loan restructuring scheme. Now the next question that comes in everyone's mind is how the loan restructuring scheme works and how it will be beneficial for the customers and who are eligible for the loan restructuring scheme. It might be noted that such a scheme is different from the loan moratorium scheme.
What is a loan moratorium scheme?
Under the loan moratorium scheme provided by RBI, customers are having an option to postpone their EMI dues for six months i.e. March, April, May, June, July, and August. Such EMI Dues will be postponed and you have to pay your EMI dues from a particular future date i.e. 1st September 2020. That means, if you have taken any type of loan from the bank or any NBFC, then RBI provided you an option of not paying the EMI of the loan for six months which will now end on 31st August 2020.
What is a loan restructuring scheme?
Under the loan restructuring scheme, the bank will restructure your loan, if the customer is still not able to pay their EMI dues due to financial crises arises due to the post effect of lockdown. In this case, customers have to repay loans but with revised and maybe lenient terms and conditions as decided by banks. If customers are opting for restructuring, banks may reduce EMI and increase the loan tenure, or charge interest only for a few months by kept aside the principal dues or may reduce the loan interest rate to give some relief to the customers. The customer is advised to interact directly with the banks or lenders of the loan to find out the most suitable solution. Whatever will be the option provided by the banks is the duly authorized relief plan.
What are the options available to customers after loan moratorium over on 31st August 2020?
Banks are likely to offer below options to the customer who has availed moratorium and is not opting for restructuring:
- Make full payment of the accrued interest payable at the end of the moratorium period (Here neither loan tenure will increase nor amount of per month EMI dues will increase).
- Capitalise the accrued interest to the outstanding principal amount of loan and pay the same by increasing the amount of EMIs to be paid for the rest of the loan tenure (Here loan tenure will not be increased but the amount of per month EMI dues will increase).
- Capitalise the accrued interest to the outstanding principal amount of loan and pay the same amount of EMI for a longer tenure (Here Loan tenure will increase but the amount of per month EMI dues is the same as earlier decided).
- Opting the Loan restructuring scheme if the customer is still facing the financial issue but the same will be offered at the option of the bank depending upon the various factor which requires to be confirmed from the banks.
Dedicated video (in hindi) to ease your understanding:
1
What are the Effects of Loan Moratorium?
Customers are confused with the one question of whether the impact of loan moratorium is good or bad. It's obvious that if we are not paying our EMI dues on time then the bank must have to charge something extra. Now under this relief of loan moratorium, the customer is having an option of not paying their EMI dues and postpone it but it definitely costs something. I have prepared a video to analyse the effect of loan moratorium and you can calculate the additional burden of interest due to loan moratorium in just 10 seconds.
JOIN OUR CHANNEL/GROUP FOR REGULAR UPDATES
On Telegram:
- Join our Telegram group for GST Updates: Click Here
- Join our Telegram group for Income Tax Updates: Click here
- Join our Telegram group for all Statutory Updates: Click here
- Join our Telegram group for Finance Updates: Click here
- Join our Telegram group for Accounts Updates: Click here
- Join our Telegram Channel for GST, Income Tax Discussion & Queries: Click here
- Join our Telegram group for Wholetubermanish overall Website updates: Click here
On Whatsapp:
- Join our GST Income Tax Update WM1: Click here
- Join our GST Income Tax Update WM2: Click here
- Join our CA Fraternity: Click here
On Facebook:
- Join our GST, Income Tax, Accounts, Audit & Finance Updates Group: Click here
- Like our Wholetubermanish FB page for overall Website updates: Click here
(We committed to deliver you the very best of knowledgeable content without even a single spamming)
If you want to submit your articles and featured your name on our website, Submit your article here or you can mail us at contact@wholetubermanish.in.
Please allow push notification from our website and subscribe to our E-mail newsletter so that you won't miss any important updates from us.
FOLLOW US ON OUR SOCIAL MEDIA HANDLES FOR REGULAR UPDATES
Post a Comment
Please drop your queries, suggestions & feedback.