WILL THE RBI MORATORIUM AND RATE CUTS BUILD A PENT-UP IN INDIA

The Reserve Bank of India has cushioned the impact of COVID-19 by offering a three-month moratorium on loans for individuals and companies. The choice of taking the RBI moratorium was left to the individuals and those who choose to opt for the moratorium will not be penalized with a default which would affect their overall credit rating. This move has given a breather to buyers and developers. The non-payment of EMIs will not affect future credit and will not turn them into bad loans or NPAs. The 75 bps (basis points) rate cut combined with a reduction of 90 bps in the reverse repo rate, will definitely infuse more liquidity. One section of the developer community views this as an indicator that more loans will be offered to customers thus resulting in an increase in demand. The developers are also hoping for a fiscal stimulus package that would help them handle the immediate liquidity crunch that they might face due to the lockdown and reduced economic activity. Visit: https://blog.pinclick.com/will-the-rbi-moratorium-and-rate-cuts-build-a-pent-up-demand/