With RBI moratorium ending soon, borrowers are clearly at the risk of walking into a debt trap.
In March, the Reserve Bank of India had permitted banks and NBFCs to allow a three-month moratorium to their borrowers, including credit card holders.
What this meant was that borrowers had the option of deferring their EMI payments due in March, April and May. The purpose was to help them tide over liquidity issues brought about by the nationwide lockdown.
With May 31 fast approaching and the lockdown extended, such borrowers are clearly at the risk of walking into a debt trap, unless the moratorium is extended or other relief measures are announced. Many are bound to find it difficult to pay EMIs post this date due to job losses, pay cuts or suspension of business activities.
In this episode of Simply Save, Moneycontrol's Preeti Kulkarni discusses effective debt management strategies with Adhil Shetty, CEO, Bankbazaar.com.
Tune in to the podcast for more.