No EMIs For Two Years: Here’s How To Apply For 2 Year Loan Moratorium

How to get two year loan moratorium? Banks are now offering a two year moratorium as per the new restructuring scheme. The new loan restructuring policy approved by the Reserve Bank of India (RBI). So, you don’t have to pay EMIs for your loan upto two years.

Home Loan EMIs Can Be Postponed By RBI After Aug 31
No EMIs For Two Years: Here’s How To Apply For 2 Year Loan Moratorium

Do note, the interest will still be applied during the two-year period. 

The loan restructuring scheme is also available on credit card EMIs and dues. This will provide relief to borrowers who lost their job or who had to incur a huge loss in their businesses due to the pandemic.

2 Year Loan Moratorium: What Are The Benefits?

The RBI loan restructuring policy benefit allows the borrower to be able to reduce the amount of EMI or get a moratorium on loan principal repayment. As RBI hasn’t set any common terms for the loan restructuring scheme, each borrower / bank has their own conditions.

You should directly contact your bank or NBFC to avail the moratorium.

India’s largest bank, the State Bank of India (SBI) launched an online portal for retail borrowers. You can directly apply on the website for loan relief and EMI repayments. The bank will further verify your eligibility as per the scheme in order to make an informed decision.

Loan Restructuring, Tenure: How to Get Two Year Loan Moratorium?

Do note you will still have to pay interest on loans. The loan restructuring scheme will include additional interest and fees, which will add up to the total cost. State Bank of India will be required to pay additional interest of 0.35% per annum over and above the current pricing. This will be applicable for the remaining tenure of the loan.

HDFC Bank is charging an additional processing fee for the restructuring loans.

The tenure of the loan will comparatively increase under the scheme with higher repayment period and the moratorium. The total interest to be paid during the duration of the loan will increase as a result.

The processing fee will be capped at and around 2 percent with an interest increase in interest. With the holiday, the total period will increase and you will have to pay a higher interest cost.

Even if it’s difficult, going for the loan restructuring facility will make you pay a lot more than you can save. So it’s wise to repay the EMIs on time, because this is not exactly a free tenure. You will have to pay interest on this, and the longer period will keep adding to the total cost. 

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