RBI responds to COVID19 crisis. Allows banks to put EMIs on hold for 3 months
For the next three months, banks have been allowed by RBI not to charge EMIs from accounts of customers. This announcement comes at a time when most of the people are anxious about their financial planning as many companies are firing or cutting salaries of their employees.
The RBI Governor addressed the entire nation today announcing various measures that are being taken to help the nation pass through the COVID19 crisis as smoothly as possible.
The governor all lending institutions are being permitted to allow 3 month moratorium on payments of installments on all term loans. What does that mean, you ask?
Well, loans to buy a motorcycle or a car are considered as term loans as they have a fixed term like one, three, five and seven years. RBI has allowed these banks but it is also up to the bank to implement this scheme.
RBI has done its job. What are the banks saying.
HDFC, which is one of the major private lender for automobile loans has already implemented this scheme. SBI has got no such official instructions yet, but being a public sector bank, it is expected to surely help people out as all other government agencies and companies have been doing so in this time of crisis.
People need to recover from their monitory losses suffered during this lockdown. RBI has given appropriate time to bank customers to get life back to normal first and then start paying EMIs. Many small business owners will benefit the most as they depend on daily operations for their day to day payments.
As the lockdown has been announced till the second week of April, employees may not get their salaries on time due to complete shut down of offices. Surely people who come under this category would be happy to hear this announcement.. This is a time to come together and help each other and the Government is leaving no stone unturned to send out that message.
Read a related article on how to keep your car safe from COVID19