(Pooja Dubey, Intern Journalist) The Reserve Bank of India, in view of the facilities of customers at the time of the Coronavirus epidemic, gave them the facility of loan moratorium, which will expire after 31 August.
Now customers are worried about what will happen to their loan after this. But the RBI allayed their concerns and brought in a loan restructuring scheme.
Other lenders, including the country’s largest public-sector bank SBI, is working on restructuring plans for home loans so that the loan period of the customers does not extend beyond two years even after the exemption in the repayment schedule. Lenders who have lost their income during the Corona period may get the option of EMI deferment for a few months.
The total period of the loan will already be extended to 14 months for the lender who has taken a loan for a period of 15 years and avails moratorium for six months. This means that most banks can reduce EMI in a few months.
The exact discount will depend on the interest rate the borrower will pay. While home loan rates have fallen below seven percent, banks say it would be difficult to provide the best rates to restructured loans as lenders would have to make an additional provision of 10 percent on restructured loans. This will increase the cost by up to 30 basis points.
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