Banks yet to process EMI deferment requests

Rachel Chitra | TNN | Updated: Apr 8, 2020, 23:07 IST

(Representative image)

BENGALURU: Bank borrowers, including small businesses, startups and individuals, who have sought EMI deferment are finding that their accounts are getting debited. Banks, operating under reduced staff strength and processing delays, say they are working on delaying debits so that they can attend to all the moratorium requests.
Take the case of S Lalitha (33), an owner of a plastics manufacturing company in Chennai, which employs 18 people. She had asked for a deferment of her monthly EMI of Rs 65,000 as early as April 1. However, the amount was debited from her account on April 5.
Dev Singh, an Indian Army soldier based in Jammu and Kashmir, says his financial responsibilities have increased post-lockdown as his younger brother, a college student remains in Delhi even though his hotel management college is closed. “I had taken a car loan and the monthly EMI is Rs 14,295. But because I had to send money, I wanted to defer this EMI. Despite applying for deferment my account got debited.”
Another borrower from Greater Noida, Jaya Sharma said: “Banks are simply not reachable. I tried my education loan officer, his boss, the call center, sent multiple emails, filled up 3 different forms that the bank put out in a week for EMI deferment (the bank kept changing forms). Inspite of this, the EMI of Rs 18,000 was debited for the education loan I had taken on behalf of my brother.”
Customers are facing issues like non-working call center numbers, unavailable bank managers, website glitches and problems downloading and uploading documents. “My bank has posted the application form as a PDF on the website. Now how do I edit the PDF? I can’t download, print and sign the PDF as I have no printer and no internet centers or photocopy shops are open. They couldn’t make the application an editable Word Doc,” said Delhi-based Meena Sharma. She availed an education loan for her son in the US but is sure her EMI of Rs 60,000 will be debited on April 10, given the lack of response from her bank.
On the other hand, banks are saying they will try to honor all customer requests. Kotak Mahindra Bank has said that if any customer, who has opted for a moratorium, finds their account debited, the EMI will be refunded by April 15-20. Some banks are delaying EMI debits until they process all requests for a moratorium. This has given anxious moments to borrowers who want to continue paying.
Raghav Diwan from Bhopal is worried about being hit with additional interest charges. “I have an EMI debit of Rs 11,900 on the 1st of every month for my car loan. This month my bank did not deduct the amount. I am worried. I don’t want to be pushed into this moratorium. I want to pay the loan on time.”
Axis Bank has fixed April 15 as the deadline for moratorium requests and will not debit any EMI until then. “EMI will be debited for customers who have not availed of the moratorium, post-April 15,” the bank said.