The Reserve Bank of India on March 27 asked banks, NBFCs and other lending institutions to allow a three-month moratorium on payment of installments on term loans, as the central bank came out with a raft of measures to alleviate the pain and disruption caused by coronavirus.
The deferment would not be classified as default and not impact the credit history of borrowers, it said.
The decision was cheered by experts who said it will act as a “sedative” for real estate developers and ameliorate the immediate pain by providing relief on loan repayments and working capital management while homebuyers will get a breather on servicing their loans.
“The moratorium of three months on EMIs on all outstanding loans (that) will ensure no impact on credit ratings on loan repayments” was a welcome move, said Niranjan Hiranandani, president, Assocham and Naredco
