There will be no benefit from three months of concession in EMI: banks will charge interest later

(PTI) New delhi date. ૧

Three months of concession in bank loan installment will not be of any benefit to the borrower as the bank will also collect the interest of these three installments as per the RBI scheme.

Last Friday, the RBI announced that loan installments for March, April and May will not be deducted due to the Corona lockdown.

Now, it seems that the borrower is going to have a double burden. On the one hand, due to the lockdown, their income has been stopped and on the other hand their loan period will be increased.

State Bank of India, the country's largest bank notifying Poeta's customers, said in a statement that interest rates will continue to be calculated during the waiting period on the current portion of the term loan.

Explaining the financial burden on the bank as an example, SBI has said that if a customer who has a home loan of Rs 5 lakh still has 5 years left to complete the loan and he opts for a three-month concession, he will have to pay an additional Rs 5 lakh in interest form and interest. This amount will be equal to eight EMIs.

Similarly, there will be 3 installments of auto loan of Rs 1 lakh and if he opts for a three-month concession, he will have to pay Rs 5,700 plus interest which is equal to his 8.5 EMI.