Header Ads

How much loss you are incurring during the EMI Period? Read Details


EMI Period: Hi friends, this article will explain how much loss we are incurring during the EMI period and how you can mitigate and take precautions accordingly.

Calculations on the loss of EMI of loan


If you have taken any kind of term loan, then you can avoid paying its EMI for 3 months.
Recently, the Reserve Bank gave relief to the middle-class people. Recently, the Reserve Bank gave relief to the middle-class people

EMI Period



Banks proposed 3-month deferment in front of customers. Credit score will not be affected, banks will also not pressurize
Recently, the Reserve Bank gave a relief to the middle-class people due to the lockdown. In fact, the central bank RBI asked the banks to give 3 months deferment on the EMI of the loan. Considering the RBI's point, almost all banks have proposed 3 months deferment in front of their customers. This means that if you have taken any kind of term loan, then you can avoid paying its EMI for 3 months.

Credit score will not be affected


During this time your credit score will not be affected and banks will not put any pressure to pay EMI. But this does not mean that your EMI will be forgiven. You have to pay EMI after 3 months. In such a situation, if you do not give EMI for 3 months, then it is a profitable deal for you or it is causing loss to you. Let's understand calculus ...

Understand the example of SBI


To understand this calculation, we take the example of the country's largest bank State Bank of India (SBI). According to the information given on the SBI website, interest will be added on whatever is outstanding during the deferment period. The increased interest will be charged through additional EMIs from the borrowers who opt for a three-month deferment.


If there is a home loan of 30 lakhs.

EMI Period


SBI has explained this in detail. Suppose Ramesh has taken a home loan of Rs 30 lakh and the repayment period is 15 years. In such a situation, if Ramesh chooses a deferment period of three months, then he will have to pay additional interest of Rs 2.34 lakh, which is equal to 8 EMIs.

If there is a car loan of 6 lakhs.


Similarly, suppose that Praveen has taken a car loan of 6 lakh rupees and there are 54 months left to repay it. If Praveen opts for the grace period, he will have to pay an additional interest of around Rs 19,000, which is equivalent to 1.5 additional EMIs. At the same time, if Ramesh and Praveen want to continue paying EMI, then they do not have to do anything. He can pay his instalments as before and he will not have to pay any kind of extra.



What is the advice of the Indian Banks Association?


The Indian Banks' Association (IBA) says that people in Corona crisis who have not made a difference in their income should pay their EMI on time. The IBA said, 'You can take advantage of the RBI's relief measure but remember that the EMI you postpone will not pay anything during the deferment period, but the account will bear interest and you will have to pay later. That means the cost of your loan will increase.

What you should do?


If you feel that there is no significant difference in your earnings even in corona crisis, then you continue to give loan EMI as before. At the same time, people whose earnings have been affected, they can contact their bank and take advantage of deferment on EMI. Along with this, call the customer care of your bank and also get this information that after the deferment period you will have to pay an additional amount.

You can also read some of the popular posts here :



Why the renewal of Health Insurance policies are extended?

COVID19 Impact: Why GDP will go down?
Festival in India 2020

I hope you have enjoyed reading this article regarding How much loss you are incurring during the EMI Period Announces 50 thousand crores for cash flow. If you like my work, please share it with your friends, family and relatives. You can also follow me on social media sites like Facebook and Instagram.


No comments

Theme images by enjoynz. Powered by Blogger.