First lets clear the concept “three-month moratorium does not mean your EMI’s are getting waived off, it simply means you can defer a loan installment; in this case, the government has given a rebate of 3 months from March 1 till May 31”. 

Who are the beneficiaries?

RBI has included all term loans dues under the moratorium. Term loans include vehicle loans, home loans, personal loans, and agricultural loans or any other credit which has a fixed tenure.

There is no interest waiver.

Interest shall continue to accrue on the outstanding portion of term loans during the moratorium. The interest added during the moratorium will get added to the customer's outstanding amount which will only increase their loan burden. 

Therefore, it is advised to only stop paying your EMI in case you are facing a liquidity crunch, else it is better to continue paying your EMI as you were paying earlier. 

Will the lender have to pay late payment charges?

No

Will this affect your credit score?

No 

What is the process to apply for a moratorium?

The lender has to inform their bank about the process. You can visit the bank's website to know the process in which you can opt for EMI moratorium. 

Will this extend the loan period? 

Yes. If you opt to not pay from March to May, the total tenure of your loan payment will increase by 3 months. 

In case someone paid for the EMI of March, can the lender ask for repayment?

Yes and No. Till now SBI only has given this option of a refund of EMI for March. For other banks, you need to get in touch with your bank and know the details. As of now, the banks are giving a moratorium facility for April and May. 

What about credit card users? 

Caution! Credit card users, you are not being levied from the late payment penalty during the moratorium period. However, the interest rate will be charged at about 40 percent per annum on the outstanding. Moreover, it will be charged from the date of purchase and not the due date of payment.

Conclusion – 

Dear borrowers, you are going to pay significant interest during the moratorium period, so if you have liquid cash flowing don’t opt for a moratorium. In the worst case, you can tap your emergency fund and pay the EMI on time so that you don’t have to pay the hefty amount later on.