Demonetisation Effect: Car Loan Borrowers To Get 60-Day Repayment Relief From RBI

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Given cash crunch being faced by borrowers, the RBI on Monday has provided additional 60 days for repayment of a car, housing, farm and other loans worth up to Rs 1 crore.

Car Loan Borrowers To Get 60-Day Repayment Relief

This applies to the loans payable between November 1 and December 31, said a RBI notification.

Car Loan Borrowers To Get 60-Day Repayment Relief

The relaxation provided is available to the entities running capital accounts with any bank within the sanctioned amount of Rs 1 crore or lesser.

Car Loan Borrowers To Get 60-Day Repayment Relief

For term loans, whether business or personal, the original approved amount, would also get a benefit of this relaxation.

Car Loan Borrowers To Get 60-Day Repayment Relief

The RBI further added that all the regulated financial institutions should note this is a short-term arrangement during the period specified above, and they cannot restructure the loans.

Car Loan Borrowers To Get 60-Day Repayment Relief

Besides, borrowers are struggling to get payments from their creditors due to various restrictions such as the cash withdrawal limit of Rs 24,000 per week.

Car Loan Borrowers To Get 60-Day Repayment Relief

For most of the public, EMIs are due in the first two weeks of the month, so the relaxation is expected to help keep the accounting standard even when the payment is yet to be received.

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Story first published: Monday, November 21, 2016, 19:27 [IST]
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