If you have borrowed money as a home or business loan, you are bound by contract to repay that loan. Repayment is over a period of time, so you also pay the time value of money, i.e. interest. Due to the lockdown, the GDP for three months of April to June was down 24 per cent. For many people there was no income. As per CMIE data, 12 crore people lost jobs in the month of April. Imagine if you were running a restaurant.
Suddenly there were zero customers. You still have to pay rent, electricity and salaries. And of course you have to pay interest and EMI on your loan, which is needed to run the business.
Imagine if you were making unbranded shirts to supply to a large retail chain. You bought the cloth, buttons, collars, thread and made 10,000 shirts for delivery.