The three-month loan moratorium announced by the Reserve Bank of India last month created a lot of confusion among customers from it being mandatory or optional, whether to opt-in or opt-out of it to how the repayments will be made. Customers also grappled with calculations as to what extent deferring EMIs will increase their loan liability. While banks released a list of frequently asked questions and experts addressed most of the queries, issues are still going on.
Observing the need gap, two start-ups LazyPay and Spocto have launched products that will help you decide if you require the moratorium or not.
LazyPay’s Credit Shield service will help you check your eligibility for EMI moratorium based on your financial conditions.
“As a platform for awareness, LazyPay Credit Shield educates and empowers users with the pros and cons of the RBI moratorium. It analyses customers’ active tradelines and shares bank and loan product information to help customers understand financial repercussions, whether they should opt-in, and what they should do to opt-out,” says Prashanth Ranganathan, CEO, PayU Finance that runs the LazyPay.
The platform will also collate information to help customers know how a specific lender has implemented the RBI guidelines and what should a customer do.
“Based on the data on the bureau, the credit shield product analyses which credit instruments are active, which are eligible for a moratorium based on the RBI guidelines and what is the default position of their lender. The product also helps the customer quickly navigate to the lender’s webpage pertaining to moratorium and make their decision,” Ranganathan adds.
LazyPay Credit Shield will also help you avail your credit reports to keep you updated on your credit score and maintain a good credit behaviour. It will send alerts and reminders on missed loans and payments, misreporting of loans, and credit card payments. If you are in the need of loan, Credit Shield will suggest you most-suited loans and credit offers based on your personal payment history, lending, and creditworthiness.
Another product that can help you with the RBI moratorium and your financial health is a conversational chatbot. Spocto, a credit monitoring platform has deployed a conversational chatbot which leads the customers through their journey with the bank, their products and outstanding amount, and the impact of their decision of availing or foregoing the benefit.
“The technology allows customers to view a calculated impact of accepting the moratorium without having to disclose all their financial details,” says Spocto in a press release.
Leveraging its B2C platform, Credit Monitor, Spocto will connect with users through a conversational chatbot that will utilise data analytics and AI to calculate the impact of deferred EMIs, considering various scenarios. “For instance, if a salaried professional with a housing loan of an outstanding principal below Rs 20 lakh and a residual tenure of fewer than 10 years is expecting a COVID-19 salary cut, he/she would be advised to take the moratorium and pay back the interest default using arrears or bonus. Similarly, an unmarried individual below 30 years of age with a credit card/vehicle loan, and an assured wage with no salary cuts would be advised to forego the benefit as he/she might have sufficient savings.”
Thus, if you have not yet made up your mind to avail or forego the EMI relief, you may check out these options to figure the future course of action. Alternatively, you can reach out to experts for their advice. Since deferring EMIs will increase your total loan outgo with added interest in the loan outstanding, you should resort to it only if you have no other means to meet your existing debt obligations.