Moratorium may make your loan expensive but will protect your credit score

Reserve Bank of India has extended the moratorium on equated monthly instalments (EMIs) by another three months - till August 31, 2020

With the Reserve Bank of India (RBI) extending the moratorium on equated monthly instalments (EMIs) by another three months — till August 31, 2020 — a lot of people facing a cash crunch would be relieved.
 

Earlier, the RBI had given a three-month EMI moratorium on all term loans, due for payment on March 1, 2020. Adhil Shetty, CEO BankBazaar, says: “However if you don’t have a cash flow issue, it would be advisable to continue paying your EMIs to reduce your loan balance.”

Suresh Sadagopan, founder, Ladder 7 Financial Advisories, says: “Ideally moratorium should be avoided, but in these