new Delhi: Ever since the Reserve Bank of India (RBI) has asked all domestic banks to give a discount on home-auto loans for three months, everyone is thinking of getting relief. Recently all the government and private banks have implemented the scheme for three months EMI relief as per RBI. But do you know whether this relief will benefit or harm you? Let us help you understand what the real meaning of this relief is …
Three months of relief is true but…
All the government banks of the country have declared relief on EMI for three months to their customers without delay. At the same time, private banks like ICICI Bank and HDFC Bank have also announced three months relief in installments. But it can prove to be a loss deal for you. Experts say that banks are giving you three months relief but due to this your interest rate may increase.
ICICI Bank and HDFC Bank have provided information about taking relief for three months EMI on their websites. It clearly states that you will have to apply for relief in EMI yourself. Also, the interest rate on your principal amount will increase during this period. Loan period will also increase for customers. The bank will recover this increased interest in equal EMI from customers.
If possible, keep paying EMI for the loan
A senior ICICI Bank official suggests that if you are getting salary, then paying EMI is the most sensible step. Actually, due to the lockdown, the government is giving you some relief only to overcome the current crisis. But in Longterm this is not a profitable deal.
Also read: Private banks said this about EMI, as well as left the right to decision to the customers.
It is noteworthy that amid the lockdown on prevention of corona virus infection, RBI appealed to banks that people may have financial problems during this period. Banks have now announced relief from EMI of three months.