Missed your home loan EMI? Here’s what you should know

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With the ferocity at which Covid-19 cases are surging, our wallets have been impacted directly. During this crisis, it won’t be too much to say that many are dealing with the shortage of funds. People are still confused if they should continue with their investments or not. They are also apprehensive about paying their EMIs due to job loss and pay cuts.

The RBI recently allowed individuals more time to repay their debt. This facility will be available to individuals and SMEs that are classified as standard accounts as of March 31, 2021, and did not restructure their loans last year. Borrowers with a total exposure of Rs 25 crore are eligible for this facility.

Satyam Kumar, CEO, LoanTap tells Money9 that this time RBI was more careful in announcing the loan moratorium. This time it is announced as loan restructuring rather than a blanket moratorium. Comparing the recent RBI guidelines with those announced last year, “this time there is a scope of customisation by the banks as per the individual’s needs.”

If a person is going through a shortage of funds and is unable to pay EMIs, he can opt for loan restructuring. Kumar said, “If an individual has taken moratorium last year, that is, he hasn’t paid the EMIs for six months, then he becomes ineligible to apply for loan restructuring.”

He added that if an individual’s account hasn’t crossed 90 days of delay in payment then he/she can apply for this scheme. The idea is basically to keep liquid funds with you because of such uncertain times. According to Kumar, people should refrain from breaking their FDs or other liquid assets for paying EMIs.

As per the RBI mandate, technically if a person has taken loan moratorium last year then he/she is not available for the new loan restructuring scheme, However, at the same time, the RBI has given the authority to the lending institutions for making decisions on a case to case basis.