Resolving The Installment Dilemma
Outlook Money|May 2020
Think carefully before you opt for any loan moratorium as it would only lead to a higher liability
Vishav
Resolving The Installment Dilemma

With the whole nation under lockdown to slow down the exponential spread of the novel coronavirus (COVID-19), businesses have been hit which has led to a disruption of financial liquidity for a lot of people. Things may have become especially worse for those who have taken loans of one or the other kind had it not been for the RBI’s intervention. Paying Equated Monthly Installments (EMIs) of those loans would have been a nightmare for some of the borrowers whose finances have been affected by an unprecedented nationwide lockdown. However, coming to their rescue, the Reserve Bank of India instructed banks to grant an optional three-month moratorium on all outstanding loans to all borrowers on their EMIs.

Those who can pay their EMIs comfortably should continue to do so

This essentially means that borrowers can defer their EMI installments that are due for payment till May 31, 2020, without any penalties or any impact on their credit scores. Loans ranging from home loans, personal loans, car loans, corporate loans, agriculture loans, and even credit card loans availed from commercial, regional, rural, NBFCs, and small finance banks come under this scheme. However, those availing this optional moratorium would have to pay the interest for this additional three-month period.

Due to this, many questions have arisen among people regarding whether it makes sense for them to opt for this moratorium or whether they should continue to pay their EMI installments during these three months as well. The verdict is not completely straight-forward. The moratorium would make sense for those individuals whose capacity to pay their EMIs has been substantially hit. Those who can pay their EMIs comfortably should continue to do so as opting for a moratorium would only add more liability for them.

Diese Geschichte stammt aus der May 2020-Ausgabe von Outlook Money.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der May 2020-Ausgabe von Outlook Money.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS OUTLOOK MONEYAlle anzeigen
Tax Reforms: What's In Store?
Outlook Money

Tax Reforms: What's In Store?

The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms

time-read
10+ Minuten  |
October 2024
5 Questions That Will Lead You To The Right Financial Planner
Outlook Money

5 Questions That Will Lead You To The Right Financial Planner

Choosing a financial planner is not as easy as it may seem. Besides the right credentials, you should also consider things like the kind of services you will be needing-tax advisory, estate planning-as well as the fee structure. Here are five questions that will help you choose the right planner

time-read
6 Minuten  |
October 2024
Health Insurance Sub-Limits
Outlook Money

Health Insurance Sub-Limits

Sub-limits in health insurance are restrictions placed by the insurance company on the SP maximum amount they will pay for specific expenses that are part of the total hospital bill.

time-read
2 Minuten  |
October 2024
Delayed Gratification, Humility, Understanding Inflation And Risks Key To Financial Success
Outlook Money

Delayed Gratification, Humility, Understanding Inflation And Risks Key To Financial Success

The journey to financial success is continuous, requiring patience, education, and disciplined decision-making.

time-read
2 Minuten  |
October 2024
Avoiding Common Pitfalls through Asset Allocation and Multi-Asset Investing
Outlook Money

Avoiding Common Pitfalls through Asset Allocation and Multi-Asset Investing

Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.

time-read
2 Minuten  |
October 2024
Mutual Funds for Financial Growth
Outlook Money

Mutual Funds for Financial Growth

Mutual funds allow you to invest in small amounts and seize the compounding growth, and experts help tackle volatility and asset allocation, making them a potent tool to create wealth.

time-read
2 Minuten  |
October 2024
Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet
Outlook Money

Multi-Asset Investing is The Financial Equivalent of A Well-Balanced Diet

Just as you track the calories and nutrients for a well-balanced diet, you need a balanced portfolio that has multiple assets to balance the risks and returns.

time-read
2 Minuten  |
October 2024
Theme and Triumph: How Thematic Funds Can Boost Your Bottom Line
Outlook Money

Theme and Triumph: How Thematic Funds Can Boost Your Bottom Line

Thematic funds target high-growth opportunities in various industries and economic sectors, allowing investors to participate in future-focused segments to generate long-term returns.

time-read
2 Minuten  |
October 2024
Wealth Creation Through SIP - The Slow & Steady Road to Success
Outlook Money

Wealth Creation Through SIP - The Slow & Steady Road to Success

For investors seeking to create long-term wealth, SIPS are a powerful tool that enables regular, disciplined investments to generate compounding returns.

time-read
2 Minuten  |
October 2024
Tuition Fee Varies Among Countries
Outlook Money

Tuition Fee Varies Among Countries

I am 22 years old and have recently started working in a software company.

time-read
2 Minuten  |
October 2024