The Covid-19 pandemic has impacted the Indian economy significantly. With a lockdown being enforced in the entire country, businesses of all kinds and sizes have been struggling to generate revenue. This has impacted both employers and employees. Payments for rent, EMIs, credit card dues, school fees, as well as other day-to-day expenses have to be taken care of without any interruption. At the same time, there have been cuts in salaries with some even losing their jobs. This has resulted in financial challenges due to the cash crunch.
The Government of India has announced various measures to make it easier for people to meet their financial obligations. Some of these are:
While choosing the moratorium on your loan EMIs or credit card dues may result in a higher interest component for you to pay back, and dipping into your EPFO funds would result in less savings for you in the long run, there is another way in which you can meet your cash crunch without paying a high rate of interest or reducing your savings.
A low-interest loan from the Public Provident Fund can be availed if you have a PPF account. The loan that you avail against your PPF funds will have to be paid back with an interest rate of just 1% p.a.
The following points have to be kept in mind:
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