Last Updated on June 16, 2021 by Dhruv Brahmbhatt
During the first wave of Corona, the Reserve Bank gave big relief to the borrowers. This relief loan was given in the form of a moratorium. This year again the country is seeing a wave of corona, which has been dubbed the second wave. Like last year, this year too, the Reserve Bank has announced a moratorium for borrowers. This work is being done under the loan restructuring program. Named Second Loan Restructuring.
Those who want to take advantage of the moratorium will have to be part of a loan restructuring program and will need to apply under it. The Second Loan Restructuring Program will only benefit those who have not been part of any loan restructuring program in the past. Those who have been repaying their loans properly will be given the benefit of this moratorium program.
In its ranks will come all those products which are considered as credit products. According to the Reserve Bank’s plan, the restructuring program covers all retail loans such as home loans, top-up home loans, personal home loans, car loans, education loans and gold loans. That is, those who take such loans can take advantage of the moratorium.
The loan will be included in the moratorium
HDFC Bank has mentioned on its website a list in the credit category that will come under the loan restructuring program. According to a report, credit card goods, auto loans and two-wheeler loans, personal loans (loans taken for self-use or business), personal loans of professionals, education loans, housing loans have been placed in the category of moratorium. If a company has given loans to its employees, it will not fall into the category of moratorium.
Beware of high interest
Under this, a person can get relief on loan repayment for two years. This applies to both interest and principal. An individual can apply for a term of 2 years under a loan restructuring program. After the end of this period you will have to go back to the old method of repaying the loan and pay a higher EMI by adding everything. If the EMI is higher then you can apply for extension of payment after moratorium. One option is for a borrower to apply for an extension without having to take a moratorium.
How much interest on 5 lakh auto loan
The thing to keep in mind here is that the latter need to pay higher interest rates to increase the moratorium facility on EMI or principal payment. If you pay less or don’t pay during the moratorium, the loan burden will increase. The amount of interest will increase and later you will have to pay more money at once. For example, suppose someone has taken an auto loan of Rs 5 lakh and its tenure is 5 years. So as per the existing rules, EMI is Rs. Will be 10,624.
If you are taking a one year term (moratorium) and are not paying any EMI, you will have to pay an EMI of Rs. 52,357 after the moratorium. If the term is taken for two years, Rs 1,10,195 will have to be paid. The principal remaining after completion of 1 year term will be Rs 5.53 lakh. After two years, the amount will be Rs 6.10 lakh. After a period of one year, the interest is Rs. 52,357 and after two years Rs. 1,10,195 will have to be paid.