Impact of Covid Moratorium on Housing Loans and Other Term Loans
Mr. Sunil, an employee, takes a housing loan of Rs 10Lakhs for a period of 30 years from ABC Bank, at an Interest rate of 8.50% pa., he is is liable to make the payment of EMI of Rs 7689/- for a period of 30 years. He has availed the loan in 2014 and is paying regularly since. Then the CoVID impacts his salary and he is affected. The RBI announces CoVID package and the bank also extend the same to him. He is in dilemma whether to accept the moratorium or not. The scenario is Sunil Paid EMI regularly His EMI is Rs 7689/- He has 24 years remaining for the completion of loan period. Here, Mr. Sunil has paid EMI of Rs 7689/- for the period of 6 years and his current principal as per amortization chart is 9.56Lakhs. His monthly interest on the loan is Rs 6750/- approx(for easy calculation purpose only)and he will get a benefit of Rs 20000/- as interest postponement (not waiver). He can save Rs 20000/- for the timebeing and he decides to repay the same in insta...