If you are still paying EMIs for your new car or two-wheeler amid coronavirus pandemic, there could be some financial relief for you in the next few months.
Amid a nationwide lock down to check on spread of coronavirus, the Reserve Bank of India on Friday allowed all banks, NBFCs and other financial institutions to allow a three-month moratorium on payment of instalments on term loans in view of the disruption caused by the coronavirus outbreak. The RBI also assured that any deferment in paying EMIs will not impact your credit history at all.
The three-month moratorium allowed by the RBI will help borrowers in easing the burden on their savings and avoid turning defaulters. The move comes after several people took to social media requesting the government to take a call in order to ease financial burden at a time when people are likely to face cash crunch.
After RBI's statement on Friday, banks and other financial institutions need to implement this to pass on the benefit to everyone.
The RBI has also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as non-performing assets (NPAs) during the 21-day countrywide lockdown.
Car makers across the world are taking similar steps to ease the burden on their customers during the coronavirus outbreak, as it has hit the economy hard. While some have offered zero percent interest EMIs on cars for seven years, a few others have even offered to defer EMIs for up to 6 months in case any customer loses job after buying a car.
For car makers too, the times are tough with factories shut down and sales nosediving across the world. And the future does not look too bright as analysts forecast even tougher times ahead with bleak chances of recovery any time before next year.
That's why car makers are taking some drastic measures. In China, the epicentre of the coronavirus outbreak, interest-free loans have been urged as drastic measure to revive car sales.
Car sales in February of 2020 in all of China fell by as much as 78% when compared to the same month in 2019. A total of 252,000 units sold in the month may appear a lot but is quite minuscule in the world's most populous country.