3 Months Moratorium : General FAQs

• What is this 3 Months Moratorium?

- The 3-month moratorium on repayment of term loans by borrowers means that they would not have to pay the loan EMI installments during the moratorium period. Going by the RBI statement, availing such a moratorium would also not lead to a downgrading of the borrower's credit rating or affect the risk classification of the loan.

• What's the Moratorium Period?

- The moratorium will apply for loan installments falling between March 1, 2020, and May 31, 2020. However, most retail borrowers would have already paid their EMIs for March. It should ideally have been for the April-June period.

• Who can issue the moratorium?

- All lending institutions. This means if you have taken a term loan from any lending institution, be it a regional rural bank, small finance bank and local area bank, a co-operative bank, all-India financial institutions, and NBFC (including a housing finance companies like HDFC), you can defer EMI payments for three months.

• What type of loans does moratorium covers? 

- All kinds of term loans. The terms loans include home loans, automobile loans, farm loans, retail loans, and crop loans.

Note: Credit Card dues too fall under this category. 

• Should I avail moratorium?

- This being the limelight question, a detailed article has already been crafted by Chargeplate. Please read the article 'Should you avail the 3 Months Moratorium or not?'

• Will this affect my credit history/score?

- No, unless the payment obligation limits itself within the moratorium period.

Any more questions? Please feel free to contact us.

Thanks for reading!