RBI moratorium on term and working capital loans may hurt business

The moratorium granted by the Reserve Bank of India (RBI), both on term and working capital loans, to provide a helping hand to corporates and customers struggling with inadequate liquidity, may become a cause for concern for them later.

Under the RBI scheme, there is a three-month moratorium on the interest payment on working capital loans.

So, after the end of three months, the deferred interest (of three months) will be collected immediately after the moratorium ends. Hence, corporates may end up paying four months interest on their loans together.

This could come as a blow to companies, given the