RBI extends loan repayment moratorium by 3 months

The Reserve Bank of India (RBI) has extended the repayment moratorium of loan repayment for term loans by another three months, till August 31.

All other conditions for the facility also remains unchanged, that is, the loan will not be classified by the lender non-performing and there will not be any impact on credit individual credit score.

“In view of the extension of the lockdown and continuing disruptions on account of COVID-19, it has been decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from June 1, 2020 to August 31, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by another three months,” RBI said.

The banking regulator has also extended the interest payment deferment for working capital loans by another six months.

Rajnish Kumar, chairman, State Bank of India, said the borrowers who did not opted for the moratorium in March, will be allowed to avail it for the next three months. Mr. Kumar said only 20% of the SBI borrowers have availed the loan moratorium.