RBI EMI 3 Month Twist - Truth behind the announcement:
Reserve Bank of India is going to lend people for a low interest. So there is a possibility that you can get a loan in low interest.
Is there a connection between the already got home and Vehicle Loans?
Did they ask us to not pay the EMI for 3 months?
What’s the update?
Will it help the middle-class people?
Will it help India or not?
We will discuss in detail in this post.
Beloved Tamil People. Greetings from Tamil Pokkisham.
IN 2020 Recession post we have already discussed that everybody will lend you money. There is no other way, this is the only way for the govt.
How is this the govt’s only option?
People should have money in their hands. So 21 days we are in our houses. We don’t have any jobs, Industries doesn’t run. There are so many issues. People will not spend a lot of money now. People will understand the importance of money now. They will only buy necessary products and avoid unwanted products. We still don’t know how much days this lockdown will continue.
So we have to spend money less.
Will People spend a lot of money now?
No. They will not buy unwanted products. If there’s a new model of Phone is releasing, people will not buy these phones. So the money which the people have will not go out. So due to this many companies, cant sell their products. So the govt will not receive tax through any sales. So the govt will be unable to perform its duties to the people. The govt will be unable to pay its employees. So people should have money in their hands, this is the only way all the countries are thinking now.
For this issue, RBI Governor has given an interview. From our channel, we have placed a request two days ago to give allowance for EMI for three months. Many analysts said that people should be given free time to pay their EMI.
So for three months, you don’t have to pay your EMI.
Do we don’t have to pay the money back for three months?
There is a lot of twists here. RBI has recommended that people don’t have to pay the EMI for three months. ONLY RECOMMENDATION. They have not declared to all banks they should not collect EMI amounts from People.
What should we do?
People who have Home, Vehicle loans, Personel Loans, Business Loans. These people can say to their banks that due to Corona they didnt receive salaries. They have to also prove to banks with their bank statements. So due to Corona, the person didnt receive any salary so the person is unable to pay the EMI. People have to prove it. Your bank has to announce that they are willing to give you time to payback EMI for three months. If the bank says this then you have to prove it with your bank statement.
Will our banks accept this?
There are chances that banks might accept this. RBI has said for three months the banks can give time for people to pay their EMI’s.
For Ex: A a Bank says that for three months they can’t wait for their EMI’s. People will not have the money to pay the EMI’s. So the bank will not receive the EMI’s amount. So these banks will write in their ledgers as bad debts. When the bad debts start to increase it will spoil the bank’s name. RBI will throw out the bank which has bad debts from its good books. So mostly every bank will announce that people don’t have to pay back the EMI for three months. After the announcement, we have to prove that we didnt get the salaries.
Another Ex: So If we have taken a loan which is payable for 2 years. Eight months we have paid the EMI’s. They have cancelled EMI’s for three months. So after the three months, your EMI will start as 9th month Payment. The three months which they cancelled will not be included as any EMI. So if you have taken 24 months EMI, you will have to pay 24 EMI’s but the three months will be given as grace period in which you don’t have to pay any EMI.
Will they reduce the interest rate of the EMI’s?
There are chances that your interests will be lower. RBI has decreased REPO.
What is this REPO interest?
This is a question from many. REPO interest means Indian Citizens cannot go and take loans directly from RBI. The banks in which we are a part will go and lend money from RBI. So RBI is the one which gives the banks money. There is an interest rate for the banks to pay back RBI. The interest rate was 5.15% until the lockdown.
Now the RBI has reduced 0.75% so the value of interest is 4.40% as interest. SO RBI is lending money to banks in a lower interest. So for lower interest, these banks will lend huge money from RBI. The banks can’t keep the money to themselves because the rotation will not happen. So they will announce to people that they are willing to lend money for a lower interest. People already are in lockdown, so after the lockdown is shifted people will need money. So people will lend loans from these banks for low interests. People who already have got Home and Vehicle loans your interest will also be reduced there are chances for that to happen. So your EMI amount may decrease. All this will be according to your bank’s announcement.
RBI has reduced its interest. So your bank has to reduce the interest also. Then only this will all happen. RBI has also decreased Reverse REPO interest rate.
What’s Reverse REPO Interest rate?
We now know that RBI is the one which lends the banks money. There is also another way that some banks can lend money to RBI. For Ex: A bank receives a deposit of 20 crore rupees. The deposited amount will be lent to the RBI. That system interest rate is now 4.0%. So the banks who have a lot of deposits will lend money to RBI. RBI then will lend that money to banks with lower deposits. This is how money rotation happens.
How much money is going to come in the rotation?
3.75 Lakh Crore rupees. So when this rotation money goes to people hands. It will slightly increase the Economy of the Country.
What announcement did Nirmala Setharaman give?
That announcement was for the people below the Poverty line. For three months poor women will be given free gas service. In ration shops, an additional 5 kg of rice and wheat will be available. Nearly 1.75 lakh Crore Rupees finance package was announced by Nirmala Setharaman. This announcement was for livelihood. But RBI announcement was for Economy.
RBI has also announced that if people didnt pay their EMI’s it should not reflect in the Cibil Score.
Will our banks accept this?
We have to wait and see. The world’s economy has gone down which has never happened for 20 years now. The whole world is in economic crisis. So to increase y\our Economy our Govt and RBI will take further steps.
We have to look at the People’s Livelihood. Milk and Grocery should be opened for some time. Tamilnadu Govt has made it 24 hrs available. A Request for the Tamilnadu Govt.
Wherever people go to buy something Police are hitting them. The Police first hit and ask questions later. So this situation should be made visible to higher Police authorities. For Ex; If we are going to buy milk or retrieve money from ATM, the Police after hitting us are asking questions. You can see many videos going Viral in Whatsapp. Police dept has to give an explanation through the media to the people.
So if a person is going to buy Grocery or Retrieve money from banks.
What should the people show you like proof?
If you have clearly given instructions people will not be affected by your beatings. The Police are giving treatment for the persons who don’t follow the rules, this happens to people who go out to buy essential products. The treatment is the same for both kinds of people. This is scaring people. This is an issue which has to be explained by the Govt and the Police Dept.
You may have a question now.
Didnt mention anything about Fixed Deposit?
Will the interest rate for fixed deposits increase or decrease?
There are chances the interest might decrease only. If you are receiving 6% as Interest. It may decrease to 5.5%. This loss should be acceptable to people.
So now you have to see which banks have an announcement for not paying the three month EMI’s. Check whether your bank is on that list or not. If your bank is in the list, then you have to prove to them you don’t have a salary. So after proving only, it will not reflect in the CIBIL score. So please keenly watch your banks actions.
People who have already got the loans, there is a possibility that the EMI interest will be reduced. So if you start to ask the procedures to your bank now through the phone. Banks are operational so do it via phone.
The next post will be an expected Post. Guess the post which will be uploaded.
Comments about this post are Most Welcome.
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