The coronavirus pandemic has affected a lot of people financially as the covid-19 crisis has led to a lot of pay cuts and job losses. To ease the financial distress of people during these difficult times, RBI had announced an EMI holiday that was for three months and was extended to six months, until August 31, 2020. Customers who take up the moratorium would not have to pay their EMIs for that particular period of time.
But as the moratorium progresses, the interest will continue to accrue on your outstanding EMI dues. So when the moratorium ends, borrowers would have to pay the pending dues along with added interest. To avoid additional burden to EMI payments, it’s recommended to continue making regular payments every month. Under extreme circumstances,when you are not able to manage financial budgets, then taking up the moratorium should be a last resort.