7 December, 2016
Given the cash crunch following demonetisation of old currencies in India, the Reserve Bank of India has come up with an interesting repayment relief recently. Now, the borrowers of home loan, car loan, agriculture loan and any other loans would get additional 60 days to repay their loans taken between November 1 to December 31, 2016. The above-mentioned relaxation will be applicable for borrowers having capital accounts with any banks and the amount opted for should be Rs.1 crore or less. All types of business and personal term loans, both secured and unsecured would be eligible for this relaxation, provided the loan amount does not exceed Rs. 1 crore.
The Central bank has taken this initiative considering the effect of demonetisation on common people and their normal banking activities. After demonetisation, borrowers are facing real problems in term of withdrawing cash and clearing of cheques. Because of restrictions imposed on cash withdrawal limit which is Rs. 24,000 per week for now, many borrower are unable withdraw money from their creditors – a fact that has affected their loan repayments.
60-day repayment relief: a boon for borrowers!
This newly announced grace period of 60 days has become a boon for the borrowers of different loans as it will not impact their credit score negatively, which usually happens in case of delayed loan repayment. Besides, may borrowers have already expressed their inability to make repayments on scheduled dates because of cash crunch due to demonetisation. Hence, this 60-day repayment relief by the RBI is going to reduce the prevalent anxiety of millions of car loan, home loan and farm loan borrowers in India.