Mumbai, March 27 -- The Reserve Bank of India (RBI) has announced relief on term loan payments for a period of three months. The COVID-19 pandemic followed by 21-days nationwide lockdown had many people worried how they would pay off their loans. As per the latest notification, borrowers of retail loans for cars, two-wheelers, home, education, personal and corporate loans will avail a three month moratorium on repayment of loan principal and interest. The decision will be applicable to all rural banks, regional, co-operative banks, NBFCs including Housing Finance Companies.

That said, the final decision on passing on the benefit to customers, however, will rest with the banks. The borrowers will have to approach the banks to avail this r...