Monfinity

From 1st August, the interest rate in Capital Gain Bonds (Sec 54 EC) offered by NHAI, REC, PFC and IRFC is being reduced from current 5.75% to 5 % p.a.

Interest rates for small saving schemes cut by 70 bps to 140 bps. These rates are applicable for the quarter starting 1st April, 2020 to 30th June,2020.

RBI has provided moratorium for the term loans and EMI can be extended for three months to provide you relief in current situation. Our take on this facility is :

1- continue to pay EMI as bank will continue to charge interest and if you do not pay EMI, your cost will increase and you will end up paying more.

2- use this facility only if you have cash crunch, not getting regular salary, getting salary cuts or have fear of loosing job due to lock down.

3. Check with your bank if they are providing moratorium by default. If yes, then you can ask them to cancel this facility against your loan account.

Again we are emphasising on the importance of creating a contingency fund to all our clients for the situations like this. Create a corpus of minimum 6 months salary and invest either in liquid/ultra short term funds or invest in short tenure fixed deposits which can be liquidated in case of any contingency.

For any query you can reach us @ 9971998876 / 9999218876 or [email protected]