I have a home loan with ICICI Bank and a car loan with HDFC Bank. Should I opt for the EMI delay option that the government has provided?

An interesting option provided by the RBI to borrowers was to offer a 3-month moratorium on term loans, working capital loans and individual loans (including home loans, car loans, personal loans and credit cards). This is a good move but you may like to consider two things before opting for it. Firstly, the waiver is subject to approval of the bank board and the decision will be at the discretion of the bank. So, it will still depend on your credit standing. Ideally it should have been a blanket instruction to the banks, with compensation issues to be worked out later. Secondly, the RBI has announced that interest will continue to accrue during the waiver period. That literally makes the waiver ineffective. This is not just an issue of liquidity management but also of loss of jobs and incomes. I suggest you talk to your bank and read the fine print of the agreement before signing up for the EMI freeze. It could end up costing you more.