What has happened mortgage and car loan interest rates recently?

Expert Solution

RBI has some major announcement due to Corona epidemic which is spreading world wide.

Major steps taken by RBI in favor of borrowers who are facing loss of income due to lockdown.

1st- 3 months moratorium on loan repayment is likely to help borrowers financially.

2nd- Massive cut in repo rate will make home loan significantly cheaper.

Moratorium means both your loan principal and interest are covered under the moratorium. It applies all outstanding loan on March 1st. During these 3 months, no need to pay EMI, including principal+ interest.

It was a big confusion within customers but, RBI clearly mentioned that;this is postponement not a waiver.RBI mentioned that tenor for term loan across the board may be shifted by 3 months.

As per RBI , interest shall continue to accrue on the outstanding portion of the term loan during the moratorium period.

It means you will be not treated as defaulter, if you don't pay till May 2020 and civil score won't be affected.

The type of loan will be eligible for moratorium are all term loans like; car loan, personal loan, educational loan, home loan and corporate loan etc.

jeff jeffy answered 1 year ago

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