Loan Mortorium: Ways to get relief in economic crisis

Yashasvi Yadav/New Delhi. If the medical emergency or the job is out of hand, filling the EMI of the loan can become a very big burden. At such a time, if you get a big help from the bank, then it will not be less than a boon for you. Let us tell you that the bank gives the option of stopping your loan EMI i.e. Mortorium. Mortorium means that you do not fill your EMI for a few months and during that time the bank will not ask for an installment from you. You may feel relaxed to hear this, but the thing to note is that it can affect your pocket later. If you are also going to choose the option of moralium, then before that, keep some things in mind.

What is a loan moratorium?

In easy language, the loan moratorium is a kind of relief, which banks or financial institutions give to their customers in difficult times. This facility is usually provided when the customer has financial problems. The loan EMI does not have to be filled during the moratorium, but the interest on your loan keeps increasing. That is, the loan burden is not completely reduced. At present, many blanket moratorium schemes are not being run by RBI. However, many banks and financial institutions provide loan restlessness to needy customers.

Suppose Vinod had taken a personal loan of Rs 5 lakh, and in such a situation the interest rate was 12 per cent annually and the loan period was 5 years. But at one time he had a little financial trouble, then he took a 3 -month moratorium. In these three months, his EMI remained closed, but interest on the loan continued for about ₹ 7,500 and this interest was added to his loan. When he started filling the EMI again, either the amount of his EMI increased or the loan period was extended so that he could also pay the connected interest. Eventually, Ravi had to pay more than Rs 10,000 extra due to that moratorium. What was relieved for some time, it actually became more burden.

Mortorium can be benefited in these cases

If your income suddenly stops, that is, your job is gone, then you can take help of this option. Apart from this, if there is any medical emergency or family financial trouble in the house, then you also get the advantage of moratorium because it becomes difficult to repay EMI at such a time. But keep in mind that this relief is only for some time and you will have to repay the loan later.