In what can be termed as a major relief to the Middle-Class in the Corona Lockdown, Reserve Bank of India had permitted all lending institutions to allow a 3-month moratorium on payment of installments on term loans. The Banks can offer a three months break to its customers.
The loan term may be increased by another three months. It is not clear if the interest will be charged during this period. No penalities or special charges can be charged during this period. Also, this will not have any bearing on the Credit History of the borrowers.
These measures will offer some solace to the small businesses and self-employed whose incomes are likely to take a hit due to the Lockdown. The RBI also cut interest rates by 75 basis points to 4.4%. He also announced several measures to inject ₹3.74 lakh crore liquidity into the system.
This accommodative stance of the RBI came a day after finance minister Nirmala Sitharaman released a ₹1.7 lakh crore package to help the vulnerable sections of the society. Meanwhile, India has entered the third day of the Three Weeks Nationwide Lockdown imposed to combat the Coronavirus.
