New Delhi, May 22 -- If you are facing severe cash crunch due to the covid-19 impact on your life and finances, you can skip paying your equated monthly instalments (EMIs) till August but remember that availing of the facility will come to bite you in the long term.

The Reserve Bank of India (RBI) on Friday extended the loan moratorium period by another three months to 31 August. The central bank, in March, had provided a moratorium on all term loans due between 1 March and 31 May 2020.

Before you opt for the moratorium, remember that it can give you short-term relief but can cost you dear in the long term. This is because, during the period of moratorium, interest will continue to be levied on the outstanding loan.

Once the moratorium...