RBI’s Moratorium policy on Loan Repayment

03 Jun

BE/RBINOTE/28/2020

The Reserve Bank of India last month extended the moratorium granted on loan repayment by another three months till August 31, keeping in view the extension in lockdown.
With this extension, borrowers can now avail six-months moratorium on loan repayment from March 1, 2020 to August 31, 2020.
This moratorium will be given on all term loans including home loan, personal loan, car loan and credit card dues also. EMI on debit and credit cards are also eligible for this moratorium. If you opt for the moratorium you don’t have to pay EMI for March, April, May, June, July and August but the same will be recovered by banks with accured interest in future.
Further, this moratorium is not a waiver, instead, it is a grace period to repay your loan if you are facing financial problems to repay your loans due to the Covid pandemic.

Let us have look at the terms and conditions of the extended loan EMI moratorium of the State Bank of India (SBI), ICICI Bank and HDFC Bank.

State Bank of India

SBI has given an option to all its eligible borrowers to opt for the moratorium by giving their consent to stop their Standing Instruction (SI)/NACH mandate for the EMIs falling due between June 1, 2020 and August 31, 2020.
SBI customers can give their consent for the moratorium by simply sending an SMS from their registered mobile number to a particular number.

SBI customers can opt for the moratorium in the following way

Standing Instruction (SI): SMS Reply <YES> to VMN within 5 days from the receipt of SMS.
NACH: SMS Reply <STOP 1234>, (1234 is the last 4 digits of their loan A/c no) to VMN within 5 days from the receipt of SMS.
In this case, interest will accrue on the outstanding portion of the loan and the bank will recover that later.
If you are not interested to opt for the moratorium then no action is required. you may continue to pay in usual course. If you are an SBI loan holder and have not received this SMS then your number is probably not updated in the bank’s record.

HDFC Bank

All HDFC Bank customers who have availed of retail instalment loan or any other retail credit facilities prior to Mar 1, 2020 are eligible for the moratorium.
The decision to offer a moratorium to a customer will be at the sole discretion of the bank, HDFC Bank said on its website.
Customers having overdues prior to Jun 1, 2020 may also opt for the moratorium, and their requests shall be considered by the bank based on its merits.
If you have already chosen for moratorium for March to May, then the same will not continue for June to August.
You will have to make a fresh application on the link provided to register for the moratorium facility for the period of Jun-Aug 2020.

How can HDFC customers opt for the moratorium?

You can opt for the moratorium by clicking on the link shared with you by the Bank through SMS or e-mail. You may also visit the Bank’s website to know details.

ICICI Bank

ICICI Bank customers can not apply for moratorium for the three months – June to August 2020- at one go.
They have to apply for the moratorium every month. This moratorium is available for 1) principal and/or interest components, 2) Equated Monthly Instalments or EMIs, 3) credit card dues, the bank said.

How to apply for moratorium

Customer can opt for the moratorium by clicking on the link shared by ICICI Bank through SMS or e-mail.
You may also visit the bank’s website for moratorium details. Further, customers have to submit the moratorium request at least five working days before EMI due date.
If anyone submits the request in less than five working days from the EMI due date or after the EMI due date, the EMI will be debited from the account but it will be refunded within seven working days.
ICICI Bank said loans availed from March 1, 2020 to May 31, 2020 are not eligible for the moratorium, since they have been availed on the basis of current evaluation of the customer’s cash flows.

How to cancel moratorium

One can also cancel the moratorium on or before 24th day of the moratorium month by calling the bank’s customer care number or by visiting his nearest loan servicing branch.
One can also send us an SMS from his registered mobile number, mentioning, ‘EXITMORAT’ to 5676766 or 9215676766 for cancellation.

KEY HIGHLIGHTS

SBI has given an option to all its eligible borrowers to opt for the moratorium by giving their consent to stop their NACH mandate
HDFC Bank customers can opt for the moratorium by visiting the bank’s website
ICICI Bank customers have to apply for moratorium every month separately