To moratorium or Not to moratorium - Saakar Financial Services

Please note, this is not a waiver EMI will just be deferred and will need to be paid later. The interest will be compounded
Once you opt for the scheme there is no chance of reversal
No action required if you would like to continue the EMI as usual
No part payment will be allowed during this deferment period once you opt for the moratorium
Three months interest will be added to the principal on 30th June & interest will be calculated on this revised principal (This means an increase of your loan tenure by 3 months & additional tenure increase based on the compounded interest)
NRI customers will need to register for a moratorium through their registered Indian mobile number or GPA phone number if that is registered

If salaries are coming on time and you have a back up for emergencies, don’t opt for a moratorium • Please opt for moratorium only if there is a liquidity issue
Deferment will add many more months to your total loan tenure due to interest compounding
Opt for a moratorium on only housing loan as it is at a lower interest rate than other loans.
Even if you opt for moratorium pls note that it will be better if you can make a part payment once the situation improves. This way the compounding burden will be lower.

In any case please note it is better to go for a moratorium rather than defaulting on payments
Many banks are viewing opting for a moratorium as financial distress & not willing to give fresh loans. Hence if you plan to opt for a fresh loan pls do not opt for the moratorium.

Author:

Ajay Ruia
Saakar Financial Services