Banks will not claim EMIs on outstanding loans for the next three months.
In light of the current Coronavirus crisis, the RBI has mandated a three-month suspension on EMI collections. What this means is that no EMI will be deducted from the accounts of those with outstanding loans for this period, be it automobile loans, home loans, corporate loans or personal loans, with no negative impact to borrowers’ credit scores.
This has been done to provide respite to people who may have lost their jobs self-employed individuals whose income has taken a serious hit over these past weeks. However, be advised that if you choose to defer these payments, you will ultimately end up paying more in the way of interest that would be calculated by the banks for the three-month period in which loan repayment was due. This additional amount may either be added up to all your future EMIs, or your loan tenure could get extended at the same EMI level.