Due to the ongoing difficulties you may have witness because of coronavirus lockdown. If you have a loan going, then you don't have to pay the EMI for March, April and May. It is a grace period for 3 months and not the waiver of your EMI.
The Reserve Bank of India (RBI), on March 27, instructed all the lending institutions to give a three-month moratorium on term loan equated monthly installments (EMIs). Banks and other lenders were directed to give borrowers a grace period of three months for payment of EMIs, including home loans, auto loans, personal loans, EMIs on debit cards and even credit cards.
If you have an ongoing loan, you do not have to pay the EMI for March, April and May. It is a grace period for three months and not the waiver of your EMI - which means you do have to pay these EMIs later on.
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Putting the onus on borrowers, many banks have taken the decision to go for the "opt in" option, in which borrowers - via phone or e-mail - have to inform the bank that they want to take the three-months moratorium.
All you need to know about the moratorium provided by three top private lenders: HDFC Bank, ICICI Bank and Axis Bank
ICICI Bank
As per the preference of borrowers, they can prefer to take the OPT-In or OPT-OUT option, according to ICICI Bank. For availing of the moratorium and postponement of payments falling due for payment between the period March 1, 2020 and May 31, 2020, the borrower will have to specifically OPT-IN for it.
Residual tenure of loan will increase when the accrued interest would be added to the principal amount, however, EMI amount will increase where extension of tenure is impossible.
Also Read: RBI asks banks to offer 3-month moratorium as default with option to opt out
As per the applicable terms and conditions for all credit card dues standard interest rates of the card variant will be levied. The interest rate specified at the time of availing of EMI facility would be levied for all EMI transactions.
HDFC Bank
HDFC Bank has said on its website that all customers who have availed of retail instalment loan or any other retail credit facilities prior to March 1, 2020 are eligible. Customers can also opt for the moratorium even if they have overdues prior March 1, 2020 and their requests shall be considered by the bank based on its merits.
Bank will not ask for any EMI Payment till May 31, 2020, if a customer opts for the three-month moratorium. The interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan. Tenure of loan will get extended by the corresponding period for which the moratorium has been availed. For example, if the EMI for the month of Mar'2020 has been paid and moratorium for April & May'2020 has been availed, then the loan tenure will be extended by 2 months, states the bank.
Customers can ask for the three-month moratorium separately even if they have loan EMI in more than one bank.
The moratorium is available on credit card outstanding and loans availed on payments due from March 1, 2020 till May 31, 2020 as far as credit card is concerned. The moratorium allows you to defer the payment till May 31, 2020. You will have to pay the minimum amount due or total outstanding and accrued interest charges on the due date after May 31 2020.
Call on this number and follow the instructions - 022-50042333, 022-50042211, or submit your request on the bank's website if the customer wants the three-month breather from loan EMI. To avail the credit card moratorium,(a) voluntarily defer paying the outstanding during this period, i.e., make NIL payment(b) turn off Auto Pay (in case the same is currently availed) through net banking / mobile banking to avail the benefit of the moratorium and reactivate the same post the end of moratorium period.
Bank also said, if customers do not want the EMI moratorium then no further action is required.
Axis Bank
It is only a deferment option and not a concession or waiver since interest would continue to accrue for this period. The repayment would resume from June 2020, once the deferment period is over, Axis Bank website said.
Customers will have to opt in to avail the moratorium benefit and defer the payments falling due between March 1, 2020 and May 31, 2020 for all loans/credit cards, credit facilities.
Bank will not ask for further EMI payments till May 2020. There will be levy of interest at the applicable rate of interest of the loan for the period of EMI moratorium on the loan outstanding. The residual tenure of the loan would be extended to the extent of applicable moratorium period, if the customer chooses the moratorium option.
Customers will not be able to reverse the decision till the end of the moratorium period, if they decide to choose it. For example, if you avail the moratorium for April 2020, it will be also applicable for May 2020.
The customer will not be allowed to make fresh purchases if they decide to avail the moratorium. Once customers pay at least the minimum amount due as indicated in your June 2020 statement, then this restriction will be lifted.
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