The Reserve Bank of India (RBI) on Friday announced an extension of the moratorium on loan EMIs by three months, i.e. August 31, 2020 in view of the COVID-19 lockdown.
The moratorium, first announced in March, allows term loan and working capital borrowers to defer their repayments. Moratorium period refers to the period of time during which you do not have to pay an EMI on the loan taken.
In his third such address since the coronavirus outbreak began on March 25, RBI Governor Shaktikanta Das today cut the repo rate by 40 basis points to 4% and also extended a moratorium on all term loans by another 3 months.
He also announced several other set of measures to ease pressure on citizens and companies in Coronavirus crisis. The RBI has also increased the export credit period to 15 months from 1 year.
