EMI HDFC moratorium: To help bank customers facing a financial crisis due to late payments or partial payment of their wages, the RBI proposed an EMI moratorium on retail loan borrowers for three months. The Central Bank announced the offer as a goodwill gesture for borrowers during the coronavirus lockdown, but people took it another way. Some of them saw it as a waiver of EMI, while others thought it was free and that no additional fees would be taken from the EMI moratorium that borrowers benefited from. So, for HDFC customers who have taken out a car loan or personal loan, the private lender has made it clear that additional interest will accrue during the three-month moratorium period.
HDFC cleared up the confusion with an illustration of the additional payments to be made by personal loan borrowers citing an illustration, “Loan amount Rs. 4 Lacs, tenor remaining 48M, Last NDE on 4-Mar-24, opting for a moratorium of 2 months i.e. April -20, May 20 EMI. The additional interest would be around Rs. 15,000 / -, and the resulting tenor would increase by 1.4 EMI, and the last installment (40% of the regular NDE) would be 4-Jul-24. “
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HDFC also gave an illustration for car loan, bike loan or any other car loan borrower citing, “Loan amount Rs. 8 Lakes, remaining tenor 36M, Last NDE on 7-Feb-23, opting for a moratorium of 3 months i.e. March 20, April 20 and May 20 EMI. The additional interest would be around Rs. 25,500 / -, and the resulting duration would increase by four months, and the last NDE, including interest recovery, would be on Jun-7-23.
Speaking clearly about the fees you will have to pay if you benefit from the EMI moratorium, the HDFC said: The outstanding loan. This interest will be collected by extending the initial term of the loan accordingly. “
Those who can pay the EMI are therefore advised not to opt for the moratorium on the EMI.