RBI has extended the loan EMI moratorium by another 3 months to August 31, 2020. Should one opt for it? Government Moratorium - coronavirus

RBI has extended the loan EMI moratorium by another 3 months to August 31, 2020. Should one opt for it?

The first phase of the moratorium was announced at the end of March 2020. The answer remains the same - if you really find it difficult to pay the regular EMIs then opt for it, otherwise not. Also one must not forget that moratorium is by no means a waiver, it's nothing but a grace period given. So even by not paying EMIs for 6 months (from March till August) your CIBIL records will not be impacted negatively. 

If you opt for a moratorium, interest will keep on accruing on the outstanding loan amount, which finally needs to be paid by you either of the three ways - 

(1) Make a one-time payment of the total accrued interest at the end of the moratorium period. EMI amount and total no. of scheduled EMI payments do not get changed here. 

(2) Let the accrued interest be added to the outstanding amount and pay it by paying higher EMIs henceforth. Here total no. of EMI payments remains the same, but not the EMI amount.

(3) Same as the second option but instead of increasing the EMI amount, one can go for the increased no. of EMI payments to be made.

Source: https://www.prudentcorporate.com/