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This article is more than 1 year old.

All EMIs on term loans automatically suspended for 3 months, clarifies SBI chief Rajnish Kumar

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All equated monthly installments (EMIs) on term loans will automatically be suspended for three months, clarified Rajnish Kumar, Chairman of State Bank of India (SBI).

All EMIs on term loans automatically suspended for 3 months, clarifies SBI chief Rajnish Kumar
All equated monthly installments (EMIs) on term loans will automatically be suspended for three months, clarified Rajnish Kumar, Chairman of State Bank of India (SBI).
This clarification came after the Reserve Bank of India (RBI) announced 3-month moratorium on all loans in order to give relief to depositors amid the ongoing coronavirus lockdown.
“Installments will get automatically deferred by 3 months for term loans and customers don’t have to apply to banks for it," Kumar said. He added that banks can formulate own policies on new loans keeping borrowers’ repayment capacity into account.
As per the announcement, credit card dues won’t be part of the 3-month moratorium as they are not part of term loan. However, all retail loans including EMIs will be covered.
The central bank, meanwhile, announced steps to boost liquidity worth 3.2 percent of the gross domestic product. It slashed repo rate by 75 basis points in order to revive growth and mitigate the impact of coronavirus on the economy.
The Monetary Policy Committee (MPC) was scheduled to meet on April, but the coronavirus impact has led the RBI to enhance his rate-setting committee meet.
For our detailed RBI coverage, click here
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