Moratorium could be a costly affair, use these strategies to reduce burden

By how much your interest cost rises depends on a few factors, the first being loan tenure

For those who have lost their jobs or suffered a pay cut but have loans to repay, the six-month moratorium on equated monthly instalments (EMIs) allowed by the Reserve Bank of India came as a welcome relief. But the deferment carries a cost. As Rachit Chawla, chief executive officer (CEO) of Finway Capital, a non-banking financial company, says: “Many borrowers were not even aware that there is a cost involved and that banks would charge interest on the unpaid amount. This makes EMI moratorium a costly affair and you should try to get rid of this extra burden as soon