India’s Shariah-compliant lenders offering moratoriums without extra charges for pandemic-hit debtors
As India’s COVID-19 lockdown puts livelihoods of millions at stake with all economic and business activities coming to a complete standstill, many borrowers of home, auto, personal or credit card loans are finding it difficult to repay their debts.
India first announced its three-week lockdown on March 24 but this was further extended to May 31, with most states further extending the restrictions for varied periods although some relaxations have been made.
While the Reserve Bank of India (RBI), the central bank, has offered a temporary relief in the form of a moratorium on loan repayments for six months, financial experts say “this isn’t a cancellation of equated monthly installments (EMI) but merely a deferment as interest will apply during the moratorium”.
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