Homefinance News

    Banks issue moratorium details: Know bank-wise terms and conditions here

    Banks issue moratorium details: Know bank-wise terms and conditions here

    Banks issue moratorium details: Know bank-wise terms and conditions here
    Profile image

    By CNBC-TV18  IST (Published)

    Mini

    Banks have announced operational guidelines on how RBI permitted moratorium or EMI deferment will be applied for their customers. Here's what borrowers need to know if they are approaching their specific banks to avail of this benefit.

    Banks have announced operational guidelines on how the Reserve Bank of India (RBI) permitted moratorium or EMI deferment will be applied for their customers.
    While the three-month moratorium is applicable for all term loans, different banks have announced different ways of implementing it. Some banks are giving the benefit to all and excluding customers only on their request, whereas others are asking customers to apply to the bank to avail the scheme and won't automatically apply it.
    However, every banker has cautioned it's borrowers. The moratorium is not a wavier or an interest holiday. Even if it is a pause in repayment, interest will continue to accrue, and borrowers will have to end up paying more for availing the scheme. Banks are therefrom requesting customers, if they have the cash available, then continuing to service loans would be in their interest.
    Here's what borrowers need to know if they are approaching their specific banks to avail of this benefit.
    State Bank of India
    SBI has said that customers who do not wish to avail moratorium, bank-speak for suspending EMIs, do not need to do anything and that their EMIs will be recovered automatically. Read details
    HDFC Bank
    The bank says that if you choose EMI moratorium, it will not ask you for any EMI payment till May 31, 2020; interest will continue to accrue on the principal outstanding for the moratorium period, and the loan tenure will be extended by the corresponding period. Read details
    ICICI Bank
    The bank has issued a set of answers to all the Frequently Asked Questions (FAQs) and guidelines for its customers with respect to the RBI-mandated moratorium, which allows the customers to defer the EMIs or credit card bills for three months. Read details
    Bank of Baroda
    The bank has also issued a FAQs list and clarified that it will refund the installment deducted for the month of March 2020 to May 2020 at the request of the customer made at Base Branch. Read details
    Kotak Mahindra Bank
    The Uday Kotak led lender has clarified that if borrowers have already paid their installments or serviced their interest for March 2020, such borrowers can avail moratorium for installments falling due in April and May 2020. Read details
    Punjab National Bank
    The public sector bank in a similar effort has issued FAQs and said reiterated that installment due between March 1, 2020, and May 31, 2020, are required to be paid after the moratorium period and that interest shall continue to accrue on the outstanding portion of the Term Loan during the moratorium period.  Read details
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng