Opting for a Moratorium - Is it Profitable??
The Reserve Bank of India (RBI) has allowed banks to grant a three-month moratorium on repayment of loans, both principal and interest, But according to bankers they advise all customers that they must take recourse to the moratorium only if they are desperately short of money.
IT is also NOT JUST A DELAY. It does not mean just three more EMIs at the end of your home loan. If You Not paid EMIs of April, May and will be added to your principal and you will be paying interest on a larger amount from July.
From Banks there are Two options :
They can increase the number of EMIs because of the enlarged principal from July.
They can keep the number of EMIs a constant and increase the amount per EMI.
Here we are trying to show the calculation of the number of higher EMIs one will have to pay if one opts for the moratorium.
In that case, if you have just started your 20-year home loans, at Rs 30,000 per month, in that case the moratorium costs you Rs 4.5 lakh. It means that’s not a great deal according to the calculations. The main thing we all should have to point out that the moratorium comes at a cost. Avail of it only if absolutely necessary.
Another main point is some banks and housing finance companies ask the customer to opt-in, others ask the customer to opt-out. Unless any customer chooses his preference of opt-in, The bank will assume that the customer doesn’t want the moratorium.
So here we suggest to all customers that check out your bank moratorium policy for choosing preference of opt-in or opt-out here.
The Final reminder for this moratorium, according to all bankers that “Take recourse to the moratorium only if you are desperately short of money”.
Ezo Thumb Rule ( Business Hack)
Ezo suggests that even if the business needs or does not need a moratorium, every business should avail a moratorium. It is like a booster loan in this challenging time. But the biggest trick here is you pay the extra EMI as soon as things come to normal so that interest paid is minimum.