40. Will the interest that is effective (EIR) for the loan be recomputed on…

40. Will the effective rate of interest (EIR) for the mortgage be recomputed due to the modification of tenure?

The entire concept of the modification would be to calculate the attention when it comes to deferment of EMIs as a result of moratorium, and also to make up the financial institution completely for similar. The IRR when it comes to loan after restructuring need, in theory, function as just like that before restructuring. Ergo, there must be no effect on the EIR.

41. Just what will function as effect of this moratorium for accounting for income through the getaway duration?

While the EIR stays constant, you will see recognition of earnings for the whole getaway duration. As an example, for the of March, 2020, interest will be accrued month. The holding worth of the asset (POS) …

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