Availing loan moratorium? Make part payment to lower interest burden

Updated: Jun 24, 2020 9:59 AM

The moratorium does not mean that the EMI dues will be written off by the bank. It only means that the payment is deferred by 3-6 months.

I suggest that you apply for the extended moratorium on June-Aug 2020.I suggest that you apply for the extended moratorium on June-Aug 2020.

By Chaitali Dutta

After availing the moratorium for three months, to what extent will a 15-year loan get extended?
—Suchitra
The moratorium does not mean that the EMI dues will be written off by the bank. It only means that the payment is deferred by 3-6 months. Also, the interest keeps on accruing on these unpaid EMIs. After August 2020, it is ideal to pay off the unpaid EMIs when your cash flow allows. You may even pay a fraction of an EMI when you have surplus funds. In case your cash flow is tight throughout these 15 years, and you do not pay these unpaid 3/6 EMIs, then for 15 years the interest will keep on accumulating and you will end up paying three times your EMI (assumed rate 8.5% on your loan).

How many days does SBI need for EMI refund as per the moratorium relief? I did the same on April 10, but did not get the refund for the month of March and April. I had sent mails to the local head office at Guwahati, but nothing happened. What should I do now?
—Parag Jyoti Lahan
I suggest that you apply for the extended moratorium on June-Aug 2020. That way your further EMI will not get deducted automatically. In the meanwhile, if your refund comes through, you can always pay additionally in your loan account. You will also have the option of paying additional EMI as and when you have the money even in this period June-Aug 2020. SBI has sent the extended moratorium details to all registered mobile numbers. Please follow the under-noted process as per your instructions to your bank. Standing Instruction (SI): SMS Reply to VMN within 5 days from the receipt of SMS. NACH: SMS Reply , (Where 1234 is the last 4 digits of loan A/c no) to VMN within 5 days from the receipt of SMS.

I have taken a loan from Kredit Bee. Can I get an extension for payment of loan?
—Arvind Gowda
The RBI guideline for moratorium of six months on EMI on all term loans is extended to NBFCs. Therefore you should be able to avail of this facility from Kredit Bee.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).
Send your queries to fepersonalfinance@expressindia.com

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