Advertisement
Corona Virus, a pandemic, which has shaken the world, has not only disrupted the lives of people on health front, but it has taken down with it-the economy of the world. Everyone from poor to rich has faced its effect on varying degrees. Keeping this situation in mind, RBI recently announced a slew of measures to tackle this unprecedented problem.
One of the major reliefs it offered was related to deferment of loans.
What does deferment of loan mean?
Simply put, it means postponing of repayment of loans. RBI has allowed banks and other financial institutions to allow moratorium of 3 months on all term loan installments as on 1st march, 2020. This rescheduling of payment will not quality as "default" for borrowers , neither it would adversely impact their credit history.
Who would it be applicable to?
This moratorium would be offered by all Commercial Banks, Regional Rural Banks, Co-operative Banks ,Housing Finance Companies or any other financial institution.
Keyword:
Moratorium- A temporary prohibition of an activity, or in this case a legal authorization to debtors to postpone payment.
No Comments...Be First to Write.
Advertisement