SBI EMI Moratorium calculation: Additional Rs 4.5 lakh interest on 15-year Home Loan of Rs 30 lakh

SBI EMI moratorium: State Bank of India has simplified the process of stopping the EMIs by initiating an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs.

SBI EMI Moratorium Calculation: Following RBI’s decision to allow banks to defer term loan EMIs by another three months, State Bank of India has extended the moratorium by another three months. This facility is available to all loan accounts of eligible customers. In a statement this week, SBI had said that it was proactively reaching out to all of its eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) / NACH mandate for the EMIs falling due in June, July and August 2020.

SBI has also simplified the process of stopping the EMIs by initiating an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs. Borrowers willing to defer their EMIs need to reply with a “YES” to a designated virtual mobile number (VMN) mentioned in the SMS sent by the Bank within five days of receiving the SMS if they wish to defer the EMIs.

Impact of EMI moratorium

On its official website, SBI has posted calculations to indicate the impact of EMI moratorium on auto and home loans of those who want to defer their EMI payment by another three months. Here’s a look:

Home Loan and Auto Loan

1. Those who availed the first 3 months of EMI moratorium and wants an extension for another three months

SBI says that a loan of Rs 30 lakh with a remaining maturity of 15 years would result in an additional interest payment of approx Rs 4.54 lakh, which is equal to an additional 16 EMIs.

An auto loan of Rs 6 lakh with a remaining maturity of 54 months would result in 3 additional EMI payment or, approx Rs 36,000 extra.

2. Those who want to avail EMI moratorium for the first time

A loan of Rs 30 lakh with a remaining maturity of 15 years would lead o an additional interest payment of Rs 2.34 lakh, which is equal to an additional 8 EMIs.

An auto loan of Rs 6 lakh with a remaining maturity of 54 months would lead to an additional payment of approx Rs 19,000, which is equal to an additional 1.5 EMIs.

Should you avail EMI moratorium? For those who can afford to pay, it may be advisable not to avail the loan EMI moratorium facility. Customers who do not want to defer their instalments need not do anything. They can continue paying.