RBI Further Breaks Down the Loan Repayment Rules!

Moratorium Period for Personal Loan

Moratorium Period for Personal Loan

Before we go deep down into the loan repayment rules, let us understand what exactly has RBI cross verified with to ease down loan repayment. The concept of a moratorium period has long existed. With more updates and trends, visit Buddy Loan to know more on current & lower interest rates, customised EMI options, loan tenures.

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Definition of The Moratorium

A period that is estimated as the loan term when the borrower doesn’t have to make any repayment. This is also referred to as a waiting period in which repayment or before EMIs begin. This time period is referred to as the moratorium period.


  • The RBI, on the other hand, relived the matters of repayment by a period of three months.
  • You can relax for the greater good, the alt on interest payments is applicable to corporate loans, home loans, car loans and personal loans.

As the highlights speak for themselves, if you are planning and opting for a loan, this would be the right time to do so. The instalments that are postponed include two principal/interest, equated monthly instalments (EMIs), and credit cards, the RBI said in a notification later.

Loan Repayment Rules

How Will This Benefit You?

Any deduction in repayment is an advantage to you. The next three months is almost a boon as a moratorium period extension will not hinder your credit score at all.

Financial experts have themselves asserted the roadmap as it is one of the best steps toward stabilising the repayment as for those whose income is nil.

The RBI has imposed this on loans such as corporate loans, home loans, car loans and personal loans. It will serve as a complete relaxation for self-employed payers due to the hit in lockdown.

The changes:

The borrowers will cover the interests of the three months. Thus, the Indian bank association has come forth with “You may take the benefits under this (RBI) package if there is a disruption in your cash flows or there is a loss of income. However, you must consider that the interest on the loans, although not mandatory for immediate payment and postponed by three months, continues to accrue on your account and results in higher costs.

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Features And Benefits You Can Avail From a Loan Aggregator

Explore your options on the best loan aggregator in the industry. Making your job easier, you’ll don’t have to look very far. Buddy Loan, as iterated above, is one of the best loan aggregators in India.

  • Getting instant personal loans disbursed within hours post approving.
  • Barely any documentation is required while applying for a loan in here, except for few documents.
  • Needn’t pledge any collateral for the instant personal loans.
  • Buddy Loan is renowned for its highest instant loan approval rate.
  • Buddy Loan disburses loans starting from Rs. 1000 to Rs. 15 lakhs, under a loan tenure cap of 3 months to 5 years (60 months).

Instant Personal Loan For You:

Buddy Loan offers multiple EMI options to enhance your credit score. Disbursing the loans at lower interest rates starting at 11.99% p.a. is an open-ended invitation that Buddy Loan is looking to provide the best possible alternative to every financial shortcoming.

They disburse moratorium period all types of collateral-free personal loans. Depending on the borrower’s credit history, lenders approve the loan quickly and with no hassles.

Your eligibility criteria play another important role in availing these instant loans from Buddy Loan. Prey payment and post-payment are subjective and you can probe your lender for the EMI options and their effects on credit score.

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Credit Score Chart to Pump Up:

  • Credit score: 300 – 600

300, is actually a below-average score that sets the creditworthiness to the negative end of credit. It signifies the former behaviour with the payment and concludes that you have had problems paying back your loan on time. A deeper study reveals that a score of 300 is almost the stage of bankruptcy or home foreclosed.

  • Credit score: 600 – 750

Though 600 falls below average, it is still considered lendable. Financial institutions, banks, NBFCs, and small lenders consider this score between a good and a bad score. You can still find lenders for loans and credit cards with a score of 600. However, carrying the same behaviour or attitude will not help you benefit much from your credit score.

  • Credit score: 750 – 850

Managing a number like 750 between the financial challenges is not just an average score but close to excellent. It could help the lenders and credit card institutions assess you through quick sanctions. But more often, the amount of money has a direct impact on your credit score.

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There are many factors that can influence your loan availability and credit score is definitely one of them. Take care of your credit score and it will take care of you.

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