Individuals and corporates having the ability to re-pay their loans are not doing so by taking advantage of the moratorium given by Reserve Bank of India (RBI), HDFC Chairman Deepak Parekh said on Monday.
“Even people who have the ability to pay — whether they are individuals or corporates — are taking advantage under this moratorium. They are deferring payments,” he said in an interaction with RBI at the CII National Council Meeting.
“If the moratorium is extended by another three months, then it is going to hurt us and smaller non-banking finance companies (NBFCs) particularly,” said Parekh.
He further requested the RBI for a one-time restructuring of loans. The extension of a three-month EMI moratorium on repayment of term loans means that borrowers need not pay their installments during such period.
The RBI first announced a three-month moratorium from March 1 to May 31 for individuals and corporates to offset the devastating impact of COVID-19 pandemic, and later extended it till August 31.