Wednesday, 1 April 2020

Moratorium on Term Loans due to COVID-19 in India,

Moratorium on Term Loans due to COVID-19 in India,  COVID-19 – RBI Regulatory Package


Moratorium has been announced by RBI on Term Loans, Moratorium can be availed on the Home Loans, Car Loans, Electric Goods purchase loans, Moratorium on Personal Loans, Moratorium on Home Loans in India. 3 Months of Moratorium on Term Loans in India from 1st March 20202 to May 2020.

Please refer to the Statement of Development and Regulatory Policies released on March 27, 2020 where inter alia certain regulatory measures were announced to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. In this regard, the detailed instructions are as follows:

Rescheduling of Payments – Term Loans and Working Capital Facilities

In respect of all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) are permitted to grant a moratorium of three months on payment of all installment falling due between March 1, 2020 and May 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

In respect of working capital facilities sanctioned in the form of cash credit/overdraft (“CC/OD”), lending institutions are permitted to defer the recovery of interest applied in respect of all such facilities during the period from March 1, 2020 up to May 31, 2020 (“deferment”). The accumulated accrued interest shall be recovered immediately after the completion of this period.

List of Banks which are providing Moratorium on Term Loans automatically and on demand


SBI: Automatic Relief
Panjab National Bank: Automatic Relief
IDBI: Automatic Relief
Canara Bank: On Demant
IDFC: On Demand
HDFC: On Demand 
ICICI: On Demand
DHFL: On Demand
IIFL: On Demand
LIC Housing Finance: On Demand


The asset classification of term loans which are granted relief as per paragraph 2 shall be determined on the basis of revised due dates and the revised repayment schedule. Similarly, working capital facilities where relief is provided as per paragraph 3 above, the SMA and the out of order status shall be evaluated considering the application of accumulated interest immediately after the completion of the deferment period as well as the revised terms, as permitted in terms of paragraph 4 above.
Moratorium on Term Loans due to COVID-19 in India,

The rescheduling of payments, including interest, will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions pursuant to the above announcements do not adversely impact the credit history of the beneficiaries.

Lending institutions shall frame Board approved polices for providing the above-mentioned reliefs to all eligible borrowers, inter alia, including the objective criteria for considering reliefs under paragraph 4 above and disclosed in public domain.

Wherever the exposure of a lending institution to a borrower is ₹ 5 crore or above as on March 1, 2020, the bank shall develop an MIS on the reliefs provided to its borrowers which shall inter alia include borrower-wise and credit-facility wise information regarding the nature and amount of relief granted.

The instructions in this circular come into force with immediate effect. The Board of Directors and the key management personnel of the lending institutions shall ensure that the above instructions are properly communicated down the line in their respective organisations, and clear instructions are issued to their staff regarding their implementation.


LIC HOUSING FINANCE LTD


Salient Features of  “Relief - COVID 19” – Reschedulement of Pre EMI / EMI.

Borrowers of Retail and Corporate loans, who have been economically impacted due to COVID -19, may exercise an option by making a request, atleast three days before due date of installment payment falling due between 01/03/2020 and 31/05/2020 at our web-site www.lichousing.com or mail to consent@lichousing.com

In case of Corporate loans, option is to be exercised by the representative duly authorized by the Company/ Firm for this purpose.

Interest shall continue to accrue on the outstanding portion of the loan during the moratorium period. Eligible Borrowers will have two options to pay the accrued interest as below:

a. Upfront payment of accrued Interest on completion of moratorium period. OR
b. Capitalize the accrued interest, which will be added to the loan amount outstanding and the same will be recovered by extending the term of the loan. Borrowers making a request as provided in (i) above, shall at the same time can opt for any the two options mentioned above.

Moratorium is only a temporary relief to tide over the economic fallout due to COVID – 19 and not to be construed as a waiver.

Borrowers who do not exercise this option, shall continue to pay their instalments as per normal terms and conditions.

Download LIC Housing Finance Guidelines on Moratorium


Click Here to Apply Online to avail Moratorium On LIC Home Loan




State Bank of India

NOTICE: COVID-19 RELIEF MEASURES
In terms of RBI COVID 19 regulatory package, SBI has initiated steps to defer the installments and interest/EMIs on Term Loans falling due between 01.03.2020 to 31.05.2020. Accordingly, the total repayment period will be extended by 3 months over the original repayment period.
Options for Customer:
Particular Course of Action
Customer who do not want to defer recovery of installments /EMI No action is required. They may continue to pay in usual course.
Customer who wants to defer recovery of instalments/EMI
  • NACH – Where collections of such installment / EMI is effected through National Automated Clearing House (NACH), please submit an Application (Annexure-I) along with mandate for NACH Extension-(Annexure-II) to stop NACH for these installments through an e-mail to the specified email ID (Annexure-III).
  • Standing Instructions (SI) – Please submit an Application (Annexure-I) through an email to the specified email ID (Annexure-III).
Customers who want refund of the installment/EMI already paid Please submit an Application (Annexure-I) through an email to the specified mail ID (Annexure-III)
Effecting deferment of EMI/NACH/Refund may take approximately 7 working days. Please bear with us. Thanks for your cooperation.
Impact of Deferment: To enable you to take an informed decision, we furnish here under the impact of deferment:
Interest shall continue to accrue on the outstanding portion of the Term Loan during the moratorium period. The possible impact of the extension of the repayment period has been explained below:
  • Impact in case of Auto Loan – For a loan of Rs.6 Lacs with a remaining maturity of 54 months the additional interest payable would be Rs.19,000 approx. equal to additional 1.5 EMIs.
  • Impact in case of Home Loan – For a loan of Rs.30 Lacs with a remaining maturity of 15 years, the net additional interest would be approx. 2.34 Lacs equal to 8 EMIs.

Download Loan Moratorium Application for SBI Bank


Download SBI Guidelines on Moratorium due to COVID-19


Download SBI All States e-mail IDs




HDFC Bank

As a measure of solidarity, RBI has permitted all Indian Banks / Indian Financial Institutions to offer it’s customers up to 3 months moratorium on their EMI payments falling due between Mar 1st, 2020 to May 31st, 2020.

Who is eligible?
All HDFC Bank customers who have availed of retail installment loan or any other retail credit facilities prior to 1st March 2020 are eligible. - Customers having overdue prior to 1st March 2020 may also opt for the moratorium, and their requests shall be considered by the bank based on its merits. All Agri Loans (Kisan Gold Card) and Micro finance customers under the Bank’s Sustainable Livelihood Initiative are also eligible. All Corporate as well as SME customers are also eligible. Our Relationship Managers will get in touch with you or you can contact them to get further details.

What will happen if I choose the EMI Moratorium?
If you choose EMI moratorium, - Bank will not ask for any EMI Payment till May 31st 2020. - Interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan. - The loan tenure will get extended by the corresponding period for which the moratorium has been availed.

How do I get this EMI moratorium?
You will have to provide your consent to the bank through any of the following ways: -





HDFC Online Application to avail Moratorium on your Loan Here


Download HDFC Loan Moratorium guidelines





ICICI Bank

ICICI Bank has, as per the Bank’s approved policy extended Moratorium to the borrower(s)/customer(s) for certain loans/ credit facilities such as Kisan Credit Card (KCC), Farm Equipment (FE), Self-Help Group (SHG)/Joint Lending Group (JLG)/Loans given through Business Correspondent (BC), Jewel Loan, Corporate Farmer Finance, Business Lending - Unsecured (Current Account Over Draft/Small Business Loan/Roaming Protect/Loan Against Credit Card Receivable, Dealer Funding, Working Capital/Trade Advance to Auto Dealers, Commercial Business, Working Capital/Trade Advance to Commercial Business customers, Consumer Finance, Two Wheeler Loans.


With respect to above loan/ credit facilities if the borrower(s) / customer(s) (whose cash flows are not impacted) do not wish to avail of the Moratorium, borrower(s) / customer(s) may OPT-OUT from the Moratorium by clicking on the link shared with the borrower(s)/customer(s) by the Bank through (i) SMS or (ii) e-mail. You may also visit ICICI Bank’s website www.icicibank.com failing which it will be deemed that borrower/ customer has
opted for Moratorium.

In respect of all other types of facilities, borrower(s)/customer(s) will need to specifically OPT-IN for availing of Moratorium and postponement of payments falling due for payment between the period beginning Mar 01 until May 31, 2020.

Is moratorium compulsory or optional?
The moratorium is optional for all kinds of credit facilities such as retail loans, Home Loans,
Business Loans, Cards and Farmer Loans.

Is the moratorium on principal or interest or both?
Moratorium can be offered for below payments due during the moratorium period.
(i) principal and/or interest components;
(ii) bullet repayments;
(iii) Equated Monthly Instalments or EMIs;
(iv) Credit Card dues.

How can I opt for the moratorium?
You can opt for the moratorium by clicking on the link shared with you by the Bank through
(i) SMS or (ii) e-mail. or following ways


ICICI Application to avail Moratorium on your Loan


Download ICICI Loan Moratorium guidelines




Canara bank


What types of loans are covered under the relief package on account of COVID 2019
All Term Loans in respect of Retail, Agriculture and MSME and Cash Credit/Overdraft which are standard assets are eligible to avail the benefits under the package.

What will be treatment of three months gap for the month of March, April & May 2020?
Bank will provide moratorium/deferment for this period. The account classification and status of the customer will not change during the period on account of deferment. However, customers have an option to repay as per existing EMI/ INSTALLMENT schedule also.

How will customer contact the bank for non deduction of EMI/ INSTALLMENT?
The customer can avail of this facility if he/she wishes so and there is no need to contact your bank if you do not want to avail of this facility. In case the customer wants to avail of the deferment, he/she has to reply to SMS sent by the bank by sending “NO” on mobile no 8422004008.


In case, borrower has not received SMS from bank for deferment of EMI/ INSTALLMENT?
The customer can send e mail to retailbankingwing@canarabank.com with details of Loan Account Number, Name of customer, Branch Name and CASA account number.
Whether EMI/ INSTALLMENT will be refixed from 01.06.2020?
Yes, the deferred EMI/ INSTALLMENTs along with accrued interest during this period will be
repayable over the extended tenor loan (original term+ three months). Accordingly the EMI/
INSTALLMENTs will be rescheduled.

Canara Bank Application to avail Moratorium on your Loan


Download ICICI Loan Moratorium guidelines


All Other Banks and Non Banking Financial Corporations


In respect of all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) are permitted to grant a moratorium of three months on payment of all installment falling due between March 1, 2020 and May 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

In respect of working capital facilities sanctioned in the form of cash credit/overdraft (“CC/OD”), lending institutions are permitted to defer the recovery of interest applied in respect of all such facilities during the period from March 1, 2020 upto May 31, 2020 (“deferment”). The accumulated accrued interest shall be recovered immediately after the completion of this period.

Lending institutions shall frame Board approved polices for providing the above-mentioned reliefs to all eligible borrowers, inter alia, including the objective criteria for considering reliefs under paragraph 4 above and disclosed in public domain.

How to opt for Moratorium?
Download the blank application below and fill the application with signature. Then scan the application and send through e-mail to your bank.



Download Application to avail Moratorium on your Loan



Email IDs of all other Banks 

Below Bank Details for Who are Running Unsecured Business Loan.

TATA CAPITAL




BAJAJ Finserv

 RBL Bank


SCB Bank 

Axis Bank

Indusind Bank





Rattanindia 

IIFL

Aditya Birla




Clix Capital 
To - covid19.moratorium@clix.capital
CC - manish.chhabra@clix.capital

Fullerton India

Shriramcity


IDFC First Bank

HDFC Bank 

Indiabulls 


ICICI Bank


Kotak Mahindra Bank


0 comments:

Post a comment

AP Latest Updates

More

General Updates

More

Telangana GOs & Proceedings

More

Title 8

Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS

Title 10

Title 11

Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Credit Card
AP
TS
Top