I have been offered a moratorium - should I accept it or not?
The decision to accept moratorium is to be made very carefully. For even though the interest rate will not change; the period for which interest will be charged will be increased. For e.g., if a moratorium of 3 months is availed, then interest will have to be paid for those 3 months too, in addition to the normal loan period (interest rate remains constant though). So, if your loan period is 9 months and you avail 3 months moratorium, then you will have to pay interest for 12 months in total. Thus, you should only avail moratorium if and only if you cannot under any circumstance make interest payment. If you can afford to pay interest regularly, then you should not opt for moratorium.
Are there any emergency loans to the help the self employed or entrepreneurs?
The business sector in general and micro, small & medium business sector (MSME) in particular has been hit hard due to the Covid-19 pandemic. The Govt. is doing its best to revive the same. The decision to allow loan moratorium, provision of funds to Financial Institutions to provide easy funds to lend (for facilitating smooth functioning of the businesses) to the MSME sector, are some of the measures taken by the Govt. of India to help the MSME sector in this hour of need. Many Financial Institutions are also coming up with loans and services to help the MSME sector especially.There are several products that NBFCs such as Muthoot Fincorp Ltd. (MFL) are providing for encouraging entrepreneurs to restart business. The "Ashwas Dinam Gold Loan" by Muthoot provides maximum value for gold, 180 days steady interest, reduced interest on daily repayments and 24x7 online payment options, for people engaged in MSME businesses.
Is there any chance to waive off moratorium interest?
As of today there is no concrete decision on the waiver of interest for moratorium. The case is currently being heard by the Supreme Court of India. The next hearing for the same is scheduled in August by the apex court. Please do check back on the website for updates
At such a time of economic crisis, how can MSMSEs manage business?
There are several support facilities and schemes being offered to units under the MSME categories -- both by governments and financial Institutions alike. Please visit our Resources page for government schemes. Alternatively, NBFCs such as Muthoot Fincorp Ltd., have launched a special Gold Loan Scheme for MSME businesses called "Ashwas Dinam Gold Loan", which offers maximum loan value against gold on a steady interest rate for 180 days, along with 24x7 online repayment options and reduced interest on daily payments. These are efforts to help "Restart Business" in India; to help valued and potential MSMEs and to make a difference in people's lives.
Are there any support benefits on agricultural sector?
With the Covid-19 pandemic, the agriculture sector has taken a hit, but the government has come up with several packages for the same. The government has mandated the movement and logistics for agricultural commodities so that the produce is not wasted and farmers do not suffer on account of it. Also, certain interest payment relaxations are available against the Kisan Credit Card (KCC), as per guidelines of the Reserve Bank of India. Details for the same can be found in the FAQs section on the bank's website from where the loan is availed, or by calling the customer care number of the bank to enquire about relaxation of credit against the KCC scheme.NBFCs such as Muthoot Fincorp Ltd. offers livestock loans such as "Grameen Jyoti Livestock Loan" with maximum permissible loan value, longer period of 12 months, low interest rates and a 2-month steady interest period at select rural locations.
#RestartIndia Response Network