Petition to PM & FM INDIA: RELIEF FOR INDIAN LOAN BORROWER;EMI HOLIDAY! PLS BAN MORATORIUM

0 have signed. Let’s get to 7,500!


6th April 2020

Dear Prime Minister Shri Narendra Modi ji,

Dear Finance Minister Smt Nirmala Sitharaman ji,

We are truly looking up on the whole of Government of India to be our SAVIORS in these times of immense Personal, Emotional, Financial stress and crisis which has locked down our freedom to move around in the society , world and generate revenue or income to pay for our essential commodities like rents / food & grocery / medicines / / our many utility bills of Electricity, Maintenance and others.

We totally welcome all the suggestions and instructions conveyed by the Government of India time-to-time w.r.t. Corona safety, prevention and supporting community and underprivileged around us  in our best capacity. We also appreciate and are following your  call out to support the poor by doing our bit in ways like contribution to the various relief funds, Food and water donations to the homeless, paying whole salaries to the workers and staff under us although they are unable to work owing to lockdown, forgoing of the collection of Rent from Tenants if we have any property on lease and so forth.

Here we like to bring to your urgent notice about the Loans which most Indian Citizens have borrowed from the Private as well as Government Banks. Under the Covid-19 mandate the RBI has allowed these Banks to continue collecting the interest on the loan amount for the period of voluntary EMI deferment. In such cases, the Borrower will keep paying interest on the Principal amount as well more numbers of  months will be added to the Tenure of Loan repayment.

EMI = Interest + Principal Amount

Its a very well known fact that during initial half Tenure of any Loan, Banks collect maximum interest (almost 70 to 80%) and least Principal Amount (20 to 30%) in an EMI. By imposing MORATORIUM CLAUSE Banks wants to charge the 70 to 80% interest throughout this period of us making zero finances along with extending number of months to prolong the Loan Tenure. So we are losing out on money as well as time and end up paying more hence opting for EMI deferment for getting a relief of just 20 to 30% margin does not make sense as it adds up to the total financial burden instead of relieving any.

In such a case, when there is no single source of income and supporting maximum people working for us and arround us in the community is imperative to reduce the load on Government, kindly help us by instructing respective Authorities for removing the MORATORIUM CLAUSE TOTALLY and instead give us total relief from paying any interest/s or EMI/s or Finance Charges for total period of lockdown plus EXTRA ONE OR TWO MONTHS of more such EMI HOLIDAY to recover financially from the total shutdown losses and jump back into action once Corona fades out totally

EMI Holiday or Mortgage repaymemt window would have been ideal considering current financial crisis if interests were not levied under the so-called moratorium clause and only as many number of months of total shutdown and recovery phase were extended in the Tenure of Loan Period.

It will be really a True Relief for all of us if Financial Institutions and Banks can suspend total EMIs atleast for days declared officially shutdown by Government of India, with the potential to extend that period for the duration of the Country's emergency declaration. It will be in the best interest for us to be allowed EMI payment deferral plans, adding equal number of months to the Tenure of Loan repayment rather than made to pay any accruing interest during our current zero income periods.

Or in case total EMI Holiday is difficult, there can be a WIN-WIN situation with a Happy Compromise for both. An example to this would be like Banks charging a monthly non-refundable retainer fee to the tune of 10% of current EMI amount so they can pay off the staff who is still working to make our lives easier.

1) In the face of such a universal adversity, we are seeing many Wealthy Industrialists and Celebrities along with General Public of India contributing to various relief funds for the Government of India

2) Even the World Bank is providing Debt reliefs and gifting more funds to many developing nations including INDIA as declared by them in following news links:

A} The World Bank’s Board of Executive Directors today approved a first set of emergency support operations for developing countries around the world, using a dedicated, fast-track facility for COVID-19 (coronavirus) response. The first group of projects, amounting to $1.9 billion, will assist 25 countries, and new operations are moving forward in over 40 countries using the fast-track process.South Asia:  In India, $1 billion emergency financing will support better screening, contact tracing, and laboratory diagnostics; procure personal protective equipment; and set up new isolation wards.

https://www.worldbank.org/en/news/press-release/2020/04/02/world-bank-group-launches-first-operations-for-covid-19-coronavirus-emergency-health-support-strengthening-developing-country-responses

B} Even the World Bank and the International Monetary Fund (IMF) stressed the need to provide debt relief to developing countries like ours. In addition to activating emergency programmes that offer grants and loans, the two financial institutions called on official bilateral creditors to provide immediate debt relief to the world's poorest nations. https://www.aljazeera.com/ajimpact/developing-countries-face-economic-collapse-covid-19-fight-200330003332689.html

3) Various Covid affected countries are providing Total EMI Holidays and many Financial reliefs to their citizens in such times of Severe Crisis

A} Mortgage payments will be suspended across Italy as part of measures to soften the economic blow of coronavirus on households, a minister has said. 

https://www.bbc.com/news/business-51814481

B} Taxpayer-owned bank RBS will allow people affected by the coronavirus outbreak to defer mortgage and loan repayments for up to three months. TSB and Lloyds said they would also allow a mortgage window, and the banks said savers could close fixed-term savings accounts without charge.This is designed to allow people to access cash if they need it as the impact of the virus is felt.Banks are also announcing extra support for affected businesses. 

 https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19

4) Various Countries are offering many Tax reliefs also in a bid to help ease Corona crisis

https://taxfoundation.org/coronavirus-country-by-country-responses/

Request your good office to kindly take URGENT necessary steps at the earliest to HELP US SUSTAIN THIS SEVERE CRISIS and direct the appropriate authorities at the earliest  to do their bit in lessening our Financial worries and burden in these times of Trials and Tribulations. As we are being overburdened financially without any fault or mal-intentions of ours!

Your right action at the right time for declaring TOTAL INDIA shutdown amidst beginning of Corona spread in the country has been tremendously praised both by Indians and  other Foreign Governments.

Similarly Your kind and considerate step for easing the financial burdens of Indian Loan borrowers will be much appreciated by your own Praja and countrymen adding to the glory of BJP Governments' timely and accurate firefighting action steps to halt both CORONA virus and its consequential  Indian Economic Depression  

Can RBI and Banks be also asked by your kind and Good Offices to do their bit to bail us out as in current scenario makes them look  LIKE BLOOD SUCKING ZAMINDARS OF BYGONE ERA COLLECTING MONEY, NO MATTER WHAT, FROM FAMINE AND DROUGHT AFFECTED PEOPLE OF THE COUNTRY !

WE ARE SURE THEY WONT GO BANKRUPT BY GIFTING US BEFITTING EMI HOLIDAYS TO SUSTAIN OURSELVES AND OUR NEIGHBOURING COMMUNITIES IN THESE TIMES OF CRISIS.

WITH HOPES OF A STRONGER INDIA THAT WINS OVER CORONA

BOTH IN HEALTH & FINANCES

YOURS SINCERELY

INDIAN LOAN BORROWERS & CONTRIBUTORS TO INDIA'S GDP

JAI HIND !!!