There is good news for the customers who were complaining that they are still receiving SMS regarding their due loan EMIs. The banks are deferring EMI payments of vehicle loans, housing loans and personal loans. The borrowers, who are impacted by the COVID-19 lockdown, are heaving with a sigh of relief. The small businesses will also be benefited as the EMI payments of MSME loans are also being deferred by banks.
The RBI had advised the banks and lending institutions to offer a three-month moratorium on repayment of all loans. This is to be done under the terms of a COVID 19- RBI package announced earlier by Reserve Bank of India.
All the major banks, including State Bank of India, shared this information on their official twitter handles.
Here is how the Banks have announced the moratorium on repayments:
State Bank of India
Punjab and Sindh Bank
“Deferment of loan instalments on account of COVID-19. We understand these are challenging times. As a Special dispensation, deferment of instalments for the month of March, April and May 2020 towards your loan accounts is available.” wrote on Twitter
IDBI Bank:
On its official Twitter handle wrote “IDBI Bank extends moratorium on Term Loan instalments/interest and deferment of interest on working capital loans of borrowal accounts impacted due to COVID 19 for 3 months.
If the borrower does not want to avail the extension, he/she will be required to do the following as per the bank. “Customer may opt out from EMI moratorium by writing an email to moratorium@idbi.co.in
Similarly, Oriental Bank of Commerce (OBC), Central Bank of India, Punjab National Bank, and Indian Overseas Bank took to twitter and informed their customers.
The Andhra Bank, Syndicate Bank, Corporation Bank, Allahabad Bank and Union Bank of India also tweeted and informed their borrowers about the EMI moratorium.
Canara Bank
UCO Bank
According to UCO Bank, the next EMI will be payable in the month of June 2020. The repayment schedule will be extended accordingly.
Bank of Baroda
BOB announcing the relief wrote, “#BankofBaroda is providing a moratorium of 3 months on payment of all instalments falling due between 01.03.20 & 31.05.20 for all term loans including Corporate, MSME, Agriculture, Retail, Housing, Auto, Personal loans, etc. in pursuance of the RBI COVID-19 Regulatory Package.”
Bank of India,
Important points to remember
The borrowers need to understand that this is not a waiver of the EMI. After three months of deferment, your banks are likely to charge interest for the unpaid amount.
The interest amount for this period may vary from bank to bank. The banks may give options to the customers to repay the interest. The banks may ask you to extend the loan tenure, take a hike in the EMI or may ask you to make a one time payment of interest.
Above all, there will be no negative impact on your credit score if you miss a credit card payment or an EMI for three months.
Under the Covid-19 relief package from RBI many consumers are going to be benefited
