Even in the lockdown, 80 per cent people are paying loan installments, the SBI chairman said

New Delhi, May 23, 2020, Saturday

Even though the Reserve Bank of India (RBI) has allowed people to refrain from paying EMIs (moratorium) for three months after the serious impact of the lockdown on the economy, people are not showing interest.

According to figures released by SBI, the country's largest state-owned bank, only 20 per cent of bank borrowers have opted for this option. The remaining 80 per cent also wants to pay the installment in the lockdown.

SBI's figures come at a time when the RBI has extended the exemption for non-payment of EMIs till August 31. Earlier, the facility was open till May 31.

SBI chairman Rajneesh Kumar said, "There are very few customers who have opted for the moratorium facility. Not all of those who have opted for this option are facing cash crunch." Many of them have chosen this option as part of their strategy.

He has advised the borrowers to pay their installments if there is no shortage of cash.

Due to this facility provided by the central government to the customers, the monthly installment of personal, auto, home, business loan or credit card will not last for 6 months. However, people will have to pay more interest on it.