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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

Topics
loans | Reserve Bank of India | Moratorium

Bindisha Sarang 



credit, banks, loan
The longer the tenor, the more interest you repay for the same loan amount and the same rate of interest

For those who have lost their jobs or suffered a pay cut but have to repay, the six-month on equated monthly instalments (EMIs) allowed by the 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 a costly affair and you should try to get rid of this extra burden as soon as possible.”

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First Published: Thu, June 11 2020. 01:45 IST

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