In a massive relief for borrowers, several public sector banks, including - SBI Bank, PNB, Union Bank and private lenders - HDFC, ICICI Bank, announced a 3-month moratorium on term loans, ruling in the directions by the Reserve Bank of India advised lending institutions to offer a three-month moratorium on repayment of all term loans in wake of the coronavirus outbreak hitting the economy hard.
On March 27, the Reserve Bank of India (RBI) said that all the lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans in order to infuse liquidity into the system as the economy grapples due to coronavirus crisis. The central bank has also allowed banks for deferment of interest on working capital loans for the next three months - until June 2020.
List of banks which have announced deferment of EMI payments on term loans, including home, auto and crop loans, for the next three months:
State Bank of India: India's biggest lender has, on RBI's directive, announced deferment of EMI payments on term loans for three months.
On its Twitter handle the bank said that they have initiated steps to defer the installments and interest/EMIs on term loans falling between March 1, 2020 and May 31, 2020.
Punjab National Bank: PNB has said, "PNB presents a relief scheme for our customers. In view of COVID-19, it has been decided to defer payment of all installments on a term loan and recovery of interest on cash credit facilities falling due between March 01, 2020 and May 31, 2020."
ICICI Bank: "The borrower(s)/ customer(s) can choose to OPT-IN or OPT-OUT, for availing of the Moratorium in respect of the credit facility(ies) availed," ICICI Bank mentioned on its website.
"In line with RBI's Covid19 relief package, ICICIBank offers its customers a choice of either paying towards their loans/credit facilities or opting for a moratorium till May 31, 2020," ICICI bank said in a tweet.
Union Bank of India: The bank said, "We are extending COVID-19 Relief to customers to defer their installments / interest falling due between 01/03/20 to 31/05/20 for 3 Months. Ease out financial crunch by deferring your Instalments / EMI for 3 Months falling due between 1/3/20 to 31/5/20 during Coronavirus Pandemic."
Indian Overseas Bank: "In terms of COVID 19- Regulatory Package, borrowers are eligible for moratorium/ deferment of installments/EMIs for Term loans falling due from 01.03.2020 to 31.05.2020," said the bank via a tweet on its official account.
"In view of COVID 19 Regulatory package announced by RBI, Customers may contact their respective branch for deferring payment of loan instalments and interest on working capital," the bank said in a tweet.
Bank of Baroda: The bank has announced as follows: "Bank of Baroda is providing a moratorium of 3 months on payment of all installments 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."
Central Bank of India: As per the bank's website, "Allowing moratorium of 3 months on payment of installments in Term Loans, which include (i) principal and/or interest components (ii) bullet repayments (iii) EMI (iv) credit card dues, falling due between 01 March 2020 and 31 May 2020. The repayment schedule for such loans as also the residual tenor will be shifted across the board by 3 months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period."
HDFC Bank: The HDFC bank has also decided to defer payment of all EMI installments on terms loans as well as credit cards. The bank has provided a link as well as a contact number to customers to opt for the moratorium.
Oriental Bank of Commerce (OBC): The bank has too announced a grant of a three-month moratorium to its customers. As per the bank, "In view of COVID-19 pandemic, OBC provides moratorium of 3 months on payments of installments/interest falling due between 01.03.20 to 31.05.20 for term loans and working capital facilities & allowing easing of working capital financing."
IDBI Bank: "IDBI Bank extends moratorium on Term Loan installments/interest and deferment of interest on working capital loans of borrowal accounts impacted due to COVID 19 for 3 months. Customers whose cash flows are not impacted and wish to continue payments are allowed the option to pay as per the existing schedule. For details, please visit http://idbibank.in"
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 firstname.lastname@example.org
The email should mention the following details:
Email Subject should be Loan Account number
In the mail body please mention the following details
Name of the borrower.
Loan account number.
Customer to mention in the email that 'I wish to opt-out from the installment moratorium facility offered by the bank, hence kindly deposit my EMI by way of ECS/SI'."
Canara Bank: "In terms of COVID 19- RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 & repayment period gets extended accordingly. SMS also has been sent to customers to avail the same," said the bank.
Syndicate Bank: "EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans falling due after 1st March 2020 and up to 31st May 2020 have been deferred by 3 months," the bank tweeted.
Punjab and Sindh Bank: As per the bank's tweet, "Deferment of loan installments on account of COVID-19. We understand these are challenging times. As a Special dispensation, deferment of installments for the month of March, April and May 2020 towards your loan accounts is available."
Allahabad Bank: The bank on its twitter handle has announced the deferring EMIs on all loans by three months.
Corporation Bank: In terms of the RBI COVID-19 Regulatory package #CorporationBank is providing a moratorium of three months on payment of all Term Loan Installments and deferment of interest on working capital limits falling due between 01.03.2020 & 31.05.2020.