The past few months have been really challenging on financial grounds as businesses were shut down, salaries cut down, job offers revoked and employees were laid off. It became really scary to look into the future with little or no money with hand.
All those who had to pay their EMIs on term loans, were however given a short term relief by RBI in form of Moratorium on loans. But, the real question here is -
Does it really help ?
Check out these handouts to find out !
#money #rbi #personalfinance #moratorium #loans #moneymanagement #indianeconomy #lockdownindia
2. WHAT DOES IT MEAN?
RBI on March 27, 2020 announced that all
banks, HFCs and NBFCs have been permitted
to allow a moratorium of 3 months on
repayment of term loans outstanding
on March 1, 2020. It was later extended for
3 more months.
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All individuals can opt to delay their
EMIs by 6 months on loan taken by
them.
3. THE
Does It Really Help ?
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BIGQUESTION
Let’s find out !
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Suppose you took a 15 year loan of 25 lacs
@9% on 1st Feb 2020 and you opted for
moratorium for next 6 months.
Your original EMI in that case would have
been Rs. 25, 357
AFTER AVAILING MORATORIUM
Your EMI becomes Rs. 26,519
NET INCREASE IN EMI = Rs. 1163
You end up paying
Rs. 2,09,340
EXTRA
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SOME MORE ANALYSIS :
Increase in EMI after taking Moratorium for 6 months
9 % 10% 11%
25 LACS Rs. 1163 Rs. 1372 Rs. 1599
50 LACS Rs. 2325 Rs. 2743 Rs. 3198
1 CRORE Rs. 4651 Rs. 5486 Rs. 6396
LOAN AMT.
ROI
Above figures assume loan repayment period of 15 yrs.
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WHAT
TO
DO
If you are in a position to pay your EMIs,
DO NOT AVAIL MORATORIUM !!
AVAIL MORATORIUM only if necessary.
Finances of many households have been affected during
these challenging times. For them, it is a short-term relief.
However, they shall ultimately have to bear the cost of
this relief in future, in form of increased EMIs.
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#STAYHOMESTAYSAFE
