Rebate on EMI: Banks issued guidelines, know what will be the effect on the account

Banks have decided to extend the facility of loan EMI to all customers. One by one, banks have started issuing guidelines.

Banks have decided to extend the facility of loan EMI to all customers. One by one, banks have started issuing guidelines. According to these guidelines, if you have given the EMI of March, then you will get a discount for only 2 months.

So far, many government banks have issued guidelines on EMI of banks loans. IBA is also going to release guidelines soon. Explain that in view of the lockdown and corona crisis, RBI had announced exemption from EMI for 3 months.

These exemptions will apply to loans such as Housing Loan, Loan Against Property, Auto Loan, Education Loan, Personal Loan.

The facility of not giving EMI will be applicable to all borrowers. If the EMI is not given, then the loan holders have nothing to do for it. If the loan holders want to give loan installment (EMI) then they have to inform their banks.

Explain that this rebate will be applicable only on EMIs falling from March 1, 2020 to May 31, 2020. If the EMI is paid to the bank in March, then the rebate on EMI of the loan will be available from April to May.

This will increase your loan term by 3 months. Interest charged during 3 months will be charged further. Interest will be adjusted with further EMI. Explain that the credit rating will not be affected if the loan EMI is not filled for 3 months.

It is to be noted that if there is a Default / Overdue before March 1, then the interest will have to be paid by the bank to the bank. Payment of old dues will not be postponed. Non-payment will attract penalty.