EMI Moratorium FAQs
We're currently in one of the most extraordinary times in our history. The Corona Virus (COVID-19) pandemic has affected each one of us adversely in one way or another - our & our loved ones' health, the businesses we depend upon, the overall state of our economy, and the way we live our daily lives.
In light of these uncertain times, the Reserve Bank of India declared an economic bailout package on 27 Mar 2020, wherein we, at Money View, on behalf of our lending partners, gave you the option to postpone your loan EMIs until May 2020.
The RBI has further allowed extending the moratorium for 3 more months from June to August 2020. Money View is extending the same offer to its customers.
As a result, we’ve compiled a list of frequently asked questions about the moratorium to help you gain an understanding & make an informed choice.
Due to the unprecedented calamity that has hit business and individuals alike, the RBI had allowed all banks, non-banking financial institutions and housing finance companies to allow a moratorium on payment of all instalments (postponement of all EMIs) falling due between March 1 2020, and May 31, 2020, which is now extended until August 31, 2020.
All customers of any term or retail loans like personal loans, home loans, auto loans, education loans, etc can take up the moratorium option, except for the customers who have an overdue payment as on March 1st, 2020. However, final discretion lies with your lending company to give you the option.
When you choose the EMI moratorium option, your EMIs that fall due between the declared period or moratorium will be postponed & your next EMI payment will be due after the period of moratorium . This is to help you sail through any financial difficulties that may come up due to the prevailing situation.
RBI has allowed extension of moratorium from the month of June 2020 till August 2020. So you can request a moratorium for these months. However, Money View would be allowing you to request 1 month’s moratorium at a time so as to allow you flexibility in managing your finances better.
To avail moratorium for a loan availed from Money View,
Go to the Loans Overview on Money View loans app >>
Click on the three dots on your top right-hand side >>
From the Dropdown- Select the EMI Moratorium option >>
In the next screen, you will have to give in your consent to opt-in or out of Moratorium (In this screen, we explain the consequences of each of your action to help you make an informed decision)
Check the button for Opt-out or Opt-In for Moratorium and Click on I Confirm button.
After you apply for the moratorium, we will review your request, before granting you the moratorium.
Yes, we would encourage you to make normal EMI payments if you are not in financial stress. That way you will end up saving the extra interest on your loan and can close your loan sooner.
No, we will not extend your moratorium automatically. You will have to provide consent again. We are in the process of framing policies regarding the extension of the moratorium. We will be sending you an official communication with details very soon.
New loans that are sanctioned after 20 March 2020, during the lockdown period, will not be eligible for the EMI moratorium option. Non-payment of EMIs for these loans will be treated as usual wherein defaulters will be charged a penalty and the missed payment will be reported to the credit bureau.
You can now place a request for Moratorium right from your Money View Loan App. The process is explained in detail above. Please make a request for a moratorium, if you require, before 03 June 2020.
Yes, you will be notified via mail/sms/app notification whether you’ve chosen to postpone your EMIs or just continue with your existing EMI plan.
As long as you’ve made your choice to postpone your EMIs & conveyed it to us through our official channel, we will not auto-debit any of your loan EMIs. We would request you to wait for our official communication regarding the moratorium extension.
No, the EMIs for the period of the moratorium will not be waived in any case. You will have to bear with additional interest & tenure eventually during your repayment period.
No, your EMIs will be postponed, which may result in an increased loan tenure along with additional interest.
You will continue with your normal EMI payments post the moratorium period. However, the tenure of your loan will increase and you would also need to pay additional interest for the principal amount that was outstanding during the moratorium period.
No, this EMI postponement is an option that’s being offered by Money View according to RBI’s COVID-19 Moratorium guidelines. So, there will be no negative effect on your credit score if you decide to opt for the moratorium.
No, we will not levy any bounce charges or late payment penalty if you have opted for the moratorium.
As specified earlier, EMI moratorium is only a postponement of your EMI payments. While there will not be any penalty charged on the non-payment of EMIs, interest will continue to add up on your outstanding principal, with reference to the official RBI notification. (Refer to section (i) - 2.)
Here’s an illustration for your understanding
Sample calculation below:-
Suppose you had an outstanding principal amount of Rs.1.00,000 as in February and you opted for a moratorium and the interest payable on your loan is 20%. Also, you have a remaining tenure of 12 months & the EMI payable each month is Rs 9263
|Rate of Interest||20%|
|Outstanding Balance||Interest Charged|
|Outstanding Balance||Interest Charged|
So, when you choose the moratorium option, you would need to pay extra interest of Rs. 1945/ for this period, as it adds up on your principal outstanding amount. On the other hand, choosing to keep your EMI plan serves you better as the interest does not change and you can close your loan earlier.
So, we would urge you to continue paying your EMIs, if you can, to avoid payment of additional interest.
No, opting for EMI moratorium will not result in any change to the terms and conditions of your loan. This is a sort of helping hand given to you by the RBI so you can deal with any possible financial implications due to the economic fallout caused by Covid-19. You won’t need to re-enable your NACH either.