Emi

In view of the COVID-19 pandemic, the RBI has instructed all banks to offer moratorium facilities. If you opt for a moratorium facility on your loan, the repayment period will be postponed. However, interest charges need to be paid during the moratorium period. If you have taken a loan from Bajaj Finserv and have opted for a moratorium, you can use the calculator provided at their website to arrive at the amount you will be paying after the moratorium period. 

You can avail moratorium facility on your home loan that  is offered by banks in the wake of COVID-19 pandemic. It can be availed for up to 6 months from March 2020 to August 2020. While you can stay away from making the repayment, interest charges apply during the moratorium period. If you plan to use the moratorium period for your home loan, through the moratorium EMI calcultor, you can get to how much you will be paying additionally after the moratorium period ends. 

The RBI (Reserve Bank of India) had announced that the moratorium would extend till August 31, 2020. The total moratorium period in all eligible term loan accounts will be extended and SBI is also reaching out to its eligible loan customers to obtain their consent to stop their Standing Instructions(SI) to debit loan EMIs every month. The bank has made it easy for customers to stop their EMIs by initiating SMS communication to all eligible customers.

Bajaj Finserv lets you avail moratorium on requesting them to stop EMI repayment of any loans during this period. Interest will continue to accrue on the outstanding amount of the loan during the period of moratorium.

According to RBI guidelines, banks are permitted to offer extension of moratorium on payment of loan installments or credit card dues which fall between the moratorium period. The moratorium period was extended to August 31,2020. Opting for the moratorium means deferment of your EMI payments. The repayment along with the accrued interest will resume from September 2020, once the moratorium period ends. 

Netbanking is the easiest way to pay your HDFC Personal Loan EMI.  Personal Loan EMIs are usually auto-debited from your bank account via NACH Mandate or ECS. However, if you want to make an overdue loan payment, you can do so from the HDFC Bank website. 

While availing a home loan, you need to make monthly EMI payments which include the principal amount and the interest payable. The Income Tax Act enables borrowers to get tax benefits on both the principal amount and the interest. When it comes to the interest portion of the EMI that is paid for the year, it can be claimed as a deduction from your total income of up to a maximum of Rs. 2 lakhs under Section 24. But the home loan taken for the purchase or the construction of the house must be completed within 5 years from the end of the financial year in which the loan was taken by you.

EMIs are calculated depending on the principal amount borrowed and at what interest rate it is borrowed at. The tenure period is also considered while calculating your home loan EMI. So the amount repayable will be the amount borrowed plus the amount payable towards interest, which will be divided throughout the tenor of the loan with uniform monthly payments.The EMI for a 30 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 9% and a tenure period of 10 years, your Equated Monthly Instalment(EMI) will be Rs.38,003. 

Home Loan EMIs have seen a considerable decrease in recent years owing to prudent financial policies by the RBI. Currently, the base rate starts at 6.75% on Home Loans, giving one of the lowest monthly EMI amounts that Indians have seen. 

The EMI for a Rs.10 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 7.5% and a tenure period of 20 years, your Equated Monthly Instalment(EMI) will be Rs.8,056. 

The EMI for a 20 lakh home loan will depend on the interest rate and the tenure period that you and your lender agree upon. For instance, if you get an interest rate of 8% and a tenure period of 20 years, your Equated Monthly Instalment(EMI) will be Rs.16,729. When your tenure is long it seems like you have lower EMIs, however its best to take a loan for the shortest period of time. In a long term loan, the interest outgo will become too high.

Taking up the EMI moratorium is not a loan waiver of any kind. It is an EMI holiday where you wouldn’t have to pay your EMIs for a specified period of time.

A normal EMI calculator returns the EMI on a specific loan amount, rate of interest and tenure. Whereas a moratorium calculator returns the increase in EMI, interest or tenure on a particular loan balance amount, interest rate and the set loan tenure.

Qualifying for a refinance will depend on your eligibility criteria and mainly your credit history. The bank where you are transferring your loan to will require a few documents regarding the loan you are refinancing and the lender will check your credit score to make sure you are creditworthy. This is to check whether you will be able to make timely payments.

Refinancing your house, that is, transferring an existing loan to another lender can help you get the best interest rates and better terms of repayment. You would have to meet a few conditions like you should have paid at least the minimum number of EMIs and the property must be ready to occupy or already occupied.

SBI had stated that the option of wanting to take the EMI moratorium or to continue making payments is upto the borrower. If you have enough cash flow then it is not necessary to take up the EMI holiday. So if you have given instructions to deduct payments as per schedule to SBI, it will continue to happen until you intimate your bank about wanting to opt for the EMI holiday. So to opt for the moratorium, you would have to mail the bank instructing the same.

Due to the hardships being faced by people because of the Coronavirus situation, the Reserve Bank of India has allowed banks and other financial institutions to provide a 3-month EMI holiday, starting from March 1, 2020 till May 31, 2020. However, you should remember that EMI holiday accrues simple interest on outstanding amounts which needs to be paid additionally. Term loans include all kinds of retail loans such as personal loans, home loans, vehicle loans, education loans, agricultural term loans as well as crop loans.

EMI Holiday does not mean waiver of repayment, but it is deferment of payment.The interest will continue to accrue on your EMIs during this 3 month period and will get added to your outstanding amount. This will also increase your financial burden when you start paying your EMIs from June. If you are getting your salary on time or have enough cash in hand, it’s better to pay your EMIs regularly.

Due to the Coronavirus pandemic, the 21-day lockdown has affected a lot of people financially. Many daily wage workers and salaried individuals have had pay cuts or have been laid off during these difficult times.

The EMI holiday is applicable for both the principal of the loan amount and the interest. The moratorium will not provide a waiver and the interest will continue to accrue on your EMIs during this 3 month period (from March 1,2020 to May 31,2020) and it will also get added to your outstanding amount. If you have already made payments for the month of March, the EMI holiday will only benefit you for the months of April and May.

The Reserve Bank of India has permitted banks and other financial institutions to allow postponement of EMIs for 3 months starting from March 1,2020 to May 31,2020. The borrower would have to request the bank and show that his/her finances have been affected due to the coronavirus disruption to avail the EMI holiday.