• About us
    • Data Analyst Team
    • Magazines Sections
    • Editorial Team
  • Advertise with us!
  • Business review
  • Guest writers
    • Guest Contribution
  • Subscription
  • Career
  • Contact us
Friday, August 12, 2022
Business Connect | Best Business magazine In India
Upcoming Event
  • News
    • All
    • Blog
    Vikram Sarabhai 101st birth anniversary: Remembering the 'Father of Space Program'

    Vikram Sarabhai 101st birth anniversary: Remembering the ‘Father of Space Program’

    Nitish to take oath as Bihar CM today; Tejashwi may become Deputy CM again

    Nitish to take oath as Bihar CM today; Tejashwi may become Deputy CM again

    India may ban Chinese phones under INR 12,000: Report

    India may ban Chinese phones under INR 12,000: Report

    CWG 2022: Most medals rained on the 10th day, Indiawon 15 medals including 5 gold

    CWG 2022: Most medals rained on the 10th day, India won 15 medals including 5 gold

    Realme 9i 5G launch date revealed: Specifications, price & more details here

    Realme 9i 5G launch date revealed: Specifications, price & more details here

    Sudhir Unstoppable: The man who fought polio now won 6th gold for India at CWG 2022

    Sudhir Unstoppable: The man who fought polio now won 6th gold for India at CWG 2022

    75th Independence Day: Free entry to all ASI-protected monuments from August 5 to 15

    75th Independence Day: Free entry to all ASI-protected monuments from August 5 to 15

    Asia Cup schedule 2022: India to take on Pakistan on August 28 in UAE

    Asia Cup schedule 2022: India to take on Pakistan on August 28 in UAE

    Earth completes its rotation in less than 24 hours, breaking record for shortest day again

    Earth completes its rotation in less than 24 hours, breaking record for shortest day again

  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV
No Result
View All Result
  • News
    • All
    • Blog
    Vikram Sarabhai 101st birth anniversary: Remembering the 'Father of Space Program'

    Vikram Sarabhai 101st birth anniversary: Remembering the ‘Father of Space Program’

    Nitish to take oath as Bihar CM today; Tejashwi may become Deputy CM again

    Nitish to take oath as Bihar CM today; Tejashwi may become Deputy CM again

    India may ban Chinese phones under INR 12,000: Report

    India may ban Chinese phones under INR 12,000: Report

    CWG 2022: Most medals rained on the 10th day, Indiawon 15 medals including 5 gold

    CWG 2022: Most medals rained on the 10th day, India won 15 medals including 5 gold

    Realme 9i 5G launch date revealed: Specifications, price & more details here

    Realme 9i 5G launch date revealed: Specifications, price & more details here

    Sudhir Unstoppable: The man who fought polio now won 6th gold for India at CWG 2022

    Sudhir Unstoppable: The man who fought polio now won 6th gold for India at CWG 2022

    75th Independence Day: Free entry to all ASI-protected monuments from August 5 to 15

    75th Independence Day: Free entry to all ASI-protected monuments from August 5 to 15

    Asia Cup schedule 2022: India to take on Pakistan on August 28 in UAE

    Asia Cup schedule 2022: India to take on Pakistan on August 28 in UAE

    Earth completes its rotation in less than 24 hours, breaking record for shortest day again

    Earth completes its rotation in less than 24 hours, breaking record for shortest day again

  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV
No Result
View All Result
Business Connect | Best Business magazine In India
No Result
View All Result
Home Blog

3 Month Loan Moratorium

Ravi by Ravi
April 3, 2020
in Blog
3 Month Loan Moratorium - Business Connect

3 Month Loan Moratorium - Business Connect

Share on FacebookShare on Twitter

3 Month Loan Moratorium: Not a Waiver, May Not Benefit All Borrowers

On March 27, 2020, The RBI (Reserve Bank of India) Governor Shaktikanta Das announced a slew of fiscal measures to deal with the economic fallout of COVID-19. In the measures, all banking and non-banking lenders have been given authority to allow a three-month moratorium on the term and working capital loan. Term loans include all types of retail loans like gold loans, car loans, education loans, and credit card bill payments and many others. It believes that will be a major relief to borrows. While the central bank of India has said that this fiscal policy won’t reduce borrower’s credit score or affect the risk credit risk classification, according to entrepreneur.com.

Three-Month loan moratorium means, borrowers, both retail and businesses, will have a choice to not pay their EMI instalment for the next three months, falling due between 1st Mar to May 31, 2020.

All industry experts have appreciated this move. According to entrepreneur.com, Jaikishan Parmar (Senior equity research analyst, Angel broking) believe that this policy will give relive a lot to every borrows, form retail loan to small and big entrepreneurs. Considering this moment, RBI is being supportive to all stakeholders of the economy.

On the other hand, many experts have said that this move might impact leaders. According to Bhavin Patel (CEO and Founder of lenDenClub, a Peer to Peer lending platform.), there isn’t any other option appear under the effect of coronavirus. The term loan policy may impact the cash flow of banks and small NBFCs, from entrepreneur.com.

Debt Repayment postponed Not Waived

Here you should know that moratorium isn’t to be misinterpreted as a payment holiday or a loan waiver. It means, skipped EMIs will be accrued or added to the outstanding principal during the moratorium. Also, your payment tenure is going to enhance by those three months that you skip.

“In respect of working capital facilities sanctioned in the form of cash credit or overdraft, lending institutions are permitted to defer the recovery of interest applied in respect of all such facilities during the period from March 1,2020 up to May 31,2020 (Deferment). The accumulated accrued interest shall be recovered immediately after the completion of this period.” RBI Statement.

It is just loan payment deferment to ease the burden of EMI to those who are having an issue to pay due to lockdown, which is likely to end 14 April.

The Devil is in Details

For those of you thinking that it is a blanket advantage that is going to be passed to all borrowers, here let me clear that It isn’t at all. instead of it, the decision to give permission about a three-month moratorium will depend upon with individual banks.” Lending institutions shall frame board-approved policies for providing the above mentioned (loan payment deferment) reliefs to all eligible borrowers,” said RBI Statement.

The more important thing, there is not any clarity we are getting whether a bank can allow the moratorium to all its borrowers or evaluate passing it on case to case basis. Entrepreneur India has mailed to two banks know about truth but they don’t get a reply at all until now.

In such a case we would recommend to those borrowers who are willing to avail the loan moratorium that they should direct approach their bank to check their eligibility. For your information, it will start on 1 March 2020 and last 31 May. It means you will have two-month relaxation unless their EMI for the march hasn’t been paid yet. If March EMI payment has defaulted due to the non-availability of funds in a bank account, that will be given relief under the moratorium period.

Previous Post

8 Ways for Your Business to Stay Ahead During the Coronavirus Outbreak

Next Post

Tata Sons and Tata Trust Pledge INR 1,500 crore To Fight COVID 19

Related Posts

Benefits of reading Magazines and Newspaper
Blog

Benefits of reading Magazines and Newspaper

by Anurag Tiwari
August 12, 2022
0

Benefits of reading Magazines and Newspaper Our life seems to be too packed to read newspapers or magazines these days....

Hottest Food Trends in 2022
Blog

Hottest Food Trends in 2022

by Anurag Tiwari
August 10, 2022
0

Hottest Food Trends in 2022 As we can have the pleasure of thinking the Covid-19 pandemic is over now and...

Top 10 Dangerous Amusement Rides Around the World

Top 10 Dangerous Amusement Rides Around the World

August 9, 2022
Top 10 Cleanest Cities in India to explore

Top 10 Cleanest Cities in India to explore

August 9, 2022
Tesla: Market Capitalization, Plans, Share Market & New Launches

Tesla: Market Capitalization, Plans, Share Market & New Launches

August 9, 2022
How Credit Card Companies Make Money

How Credit Card Companies Make Money

August 8, 2022
Next Post
Tata Sons and Tata Trust Pledge INR 1,500 crore To Fight COVID 19 | Business Connect

Tata Sons and Tata Trust Pledge INR 1,500 crore To Fight COVID 19

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Benefits of reading Magazines and Newspaper

Benefits of reading Magazines and Newspaper

August 12, 2022
Musings of a Lazy Author

Musings of a Lazy Author

August 12, 2022
KALATMAK SPATIAL SYSTEMS

KALATMAK SPATIAL SYSTEMS

August 12, 2022
Vikram Sarabhai 101st birth anniversary: Remembering the 'Father of Space Program'

Vikram Sarabhai 101st birth anniversary: Remembering the ‘Father of Space Program’

August 12, 2022

Recent News

Benefits of reading Magazines and Newspaper

Benefits of reading Magazines and Newspaper

August 12, 2022
Musings of a Lazy Author

Musings of a Lazy Author

August 12, 2022
KALATMAK SPATIAL SYSTEMS

KALATMAK SPATIAL SYSTEMS

August 12, 2022
Vikram Sarabhai 101st birth anniversary: Remembering the 'Father of Space Program'

Vikram Sarabhai 101st birth anniversary: Remembering the ‘Father of Space Program’

August 12, 2022

Recommended

Maruti Suzuki Baleno facelift to launch today: India price, design, safety features details here

Maruti Suzuki Baleno facelift to launch today: India price, design, safety features details here

February 23, 2022
CUROTHERM TECHNO SOLUTIONS LLP A Prominent name in the Healthcare Industry

CUROTHERM TECHNO SOLUTIONS LLP A Prominent name in the Healthcare Industry

February 6, 2021

Most Popular

Benefits of reading Magazines and Newspaper
Blog

Benefits of reading Magazines and Newspaper

August 12, 2022
Musings of a Lazy Author
Lounge Interviews

Musings of a Lazy Author

August 12, 2022
KALATMAK SPATIAL SYSTEMS
Lounge Interviews

KALATMAK SPATIAL SYSTEMS

August 12, 2022

Business Connect is a business magazine whose name is derived from Business Community which connects entrepreneurs, executive officers and VCs. With a mission to have one of the highest readership figures of senior-level executives and investors in India, Business Connect brings its edition on monthly basis.

Follow Us

Contact Information

Address: 807, DDA 2, District Centre, Janakpuri West, New Delhi-110058

Phone Number: +91-11-41065208, 42636209

Mail:

  • abhishek@businessconnectindia.in
  •  events@businessconnectindia.in
  •  info@businessconnectindia.in

Recent News

Benefits of reading Magazines and Newspaper

Benefits of reading Magazines and Newspaper

August 12, 2022
Musings of a Lazy Author

Musings of a Lazy Author

August 12, 2022
KALATMAK SPATIAL SYSTEMS

KALATMAK SPATIAL SYSTEMS

August 12, 2022

Request a call back

  • About us
  • Why us
  • Healthcare
  • Guest writers
  • Career
  • Contact us

© 2020 All Rights Reserved by Business Connect India

No Result
View All Result
  • News
  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV

© 2020 All Rights Reserved by Business Connect India