RBI’s 3-month moratorium: Higher interest if you defer EMI payments
***You have to pay the first installment in April, but you choose to take the moratorium. This means the principal of Rs. 40 lakh attracts interest at 8.5%/12 = Rs. 28,000. So your loan amount at the end of April is Rs. 50,28,000.
You don’t pay in May. Interest applies on the FULL amount of 50.28 lakh now, so it’s a little closer to Rs. 29,000 in May. The total outstanding becomes Rs. 40.57 lakh. After three months, your new principal is Rs. 40.86 lakh. Effectively you’ll have about Rs. 86,000 thousand in extra interest to be paid to the bank.
The loan stretches three more months at the end, but this Rs. 86,000 thousand extra is additional so its better choice ,You Should Pay If You Can.