The Government of India, recently informed the Supreme Court (SC) about the extension of the moratorium on loans.
On the 1st of September, during a court hearing, the Central Government said, one can avail an extension of two years on loans with documents like termination letter, cut salary and other financial hardships.
The Reserve Bank of India (RBI) in March 2020, announced a moratorium of six months, which was a major relief for all money lenders, during this pandemic. The temporary six month moratorium relief to all existing individual and corporate term loan borrowers ended on the 31st of August.
However, the Central Government and RBI opened an option for people who would be unable to pay the EMI on the moratorium of the loans.
In case you have lost your job or have been subjected to pay cut and in case you are self employed are facing financial problems, you can avail the facility of loan structuring which will be made available by your lender once it is formulated.
This would help an individual to extend a moratorium loan repayment for two years.
The RBI has made this facility of restructuring available to all the people who took a personal loan like consumer loans, education loans , home loans, loan against security of financial assets given to an Individual and others.
Stay tuned for further updates.
