The only relief for borrowers is the six months moratorium which defers EMI payments for term loans without the loan turning NPA.

By Chaitali Dutta

I have availed moratorium and was confirmed by LIC HFL. However, my account shows overdue and missed EMI being accumulated as overdue amount. What should I do?
—Naveen

The RBI moratorium in these difficult corona times does not do away with your obligation to repay. The EMIs continue to be due and interest will also be charged on the overdue amount. Availing of the moratorium only lets your loan remain ‘regular’ in the books of the lender and loan account is not reported as an NPA.

I am left with only 11 EMIs on my car loan. I also have a personal loan with five EMIs pending. I have some spare funds. Which should I repay?
—Deepak Sabharwal
Personal loan attracts a higher rate of interest, so pay that off first. Then if you still have surplus funds, pay off the car loan. Collect lien removal RTO Form 35 in duplicate in addition to NOC and loan closure letter. Do visit the bank branch for car laon closure.

I have a car loan, a personal loan and a gold loan. Last year I lost my job and started to do freelance work and was paying my EMIs. But with the lockdown, I have no work and am unable to pay EMIs. Can I benefit from government’s relief package?
—Manvendra Singh Rathore

The only relief for borrowers is the six months moratorium which defers EMI payments for term loans without the loan turning NPA. Collateral free loans for SME sector has also been announced, but for availing of the benefits, you need to be registered as an SME enterprise.

I have gold loan of Rs 2 lakh from Muthoot Finance. I want to opt for moratorium but it says it is not applicable for gold loan. Is it true?
—L Saikumar
As per website of Muthoot Finance, it is clear that gold loan is eligible for a moratorium but only if the loan is availed as a term loan and is repaid by EMIs. There is an additional restriction, the moratorium is applicable only for gold loans which are active as on March 1, 2020 and completing the sanctioned period of 12 months on or before May 31, 2020. In case these criteria are not met, the finance company may not offer you the relief of moratorium.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).
Send your queries to fepersonalfinance@expressindia.com