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
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.
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.
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