3 Months Moratorium Leverage is not Good for Credit Card Users


  • See how 3 Months Moratorium Leverage Given by RBI is not Good for Credit Card Users.
  • This Facility will only Postpone the EMI Dates but not Waive off the EMIs.
  • Applicable Interest will be Charged on the Outstanding amount whether you delay the payment or pay on time.

The Reserve Bank of India has given some guidelines to face the financial crisis due to lockdowns Coronavirus Outbreak. In the guidelines, the RBI clearly says that the credit card users will get a suspension for 3 months to clear the credit card bills and pay the EMIs running on it. Further, the RBI said that during the period of 3 months if the credit card user is unable to pay the bill then no late payment fees will be charged and the CIBIL score of the individual will also not get affected. But there are some credit card users who are misusing this leverage given by the Reserve Bank of India. Although they have enough funds, they are not clearing their credit card bills due to the leverage.

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So, if you have enough funds to clear the monthly dues if the credit cards then you must not misuse 3 months’ leverage given by the RBI. There are some hidden consequences of not paying the credit card bills on time.

Consequences of 3 Months Moratorium Period for the Credit Card Users

You must be aware of the fact that the omission of the credit card bill will neither affect your CIBIL Score nor include any extra charges. But there are some negative impacts of this leverage given by RBI.

Regular Interest

The bank will charge the regular interest on the outstanding amount whether you pay the bill on time or suspend it for 3 months. So, it is better to clear all the debts if you are having enough funds. Delaying the payment will make you to pay more interest on the outstanding amount. So if you are getting the benefit of no late payment charges then you have to pay the interest on the balance amount of the best credit card.

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Financial Overburden in Future

Try to make the payment of the minimum due amount of credit card. If you skip the credit card bill payment for 3 months, then it will create a financial burden on you when the Coronavirus Crisis finishes and the period of 3 months expires. Therefore, you should not skip the credit card bill payment if you are having enough funds for easily clearing the dues.

Credit Card Bill has to be Paid No Matter What

If you want to continue using the credit card and all its facilities then you have to clear the credit card bills. The credit card bill has to be paid whether you pay it on a regular basis or after a break of 3 months. So, if you are having enough funds that you can make payment of the credit card bills then you must not delay the payment because there are some negative consequences for that.

Increases Tenure of Loan

Some credit card users take loans against the credit card limit and they have to pay regular EMIs. If you think that the 3 Months Moratorium period will reduce the interest on the outstanding amount then you are wrong. According to RBI’s guideline, the payment of EMIs is only delayed for 3 months and extra charges are exempted but not the interest on the loan amount. You should pay the credit card bills on time if you are having sufficient funds otherwise your loan tenure will increase by 3 months.

EMI is Delayed not Waived Off

The repayment of the credit card bill and the EMI is only postponed for 3 months but they are not waived off. Don’t make that perception that your bills or EMI will be waived off after 3 months. They are only delayed for payment but in the end you have to clear the pending credit card bills and EMIs.

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The RBI’s guideline of the 3 Months Moratorium Period is only useful for the needy individuals who are going through a very bad financial crisis. The individuals who are capable enough to pay the credit card bills on time must not defer the payment by 3 months. Use this leverage of RBI only if delaying the credit card payment is the last option otherwise try to clear the dues on time.

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