Coronavirus Pandemic: Indian Bank, UCO Bank And 5 Others Grant 3-Month Moratorium To Customers

The Reserve Bank of India, last week, had permitted banks, NBFCs (including housing finance companies) and other financial institutions to allow a three-month moratorium on payment of installments on term loans in view of the disruption caused the coronavirus outbreak. Following the instructions, several leading banks of the country had provided a three-month moratorium to its customers on payment of EMI, interest on loans etc.

"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 and micro-finance institutions) ("lending institutions") are being permitted to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by three months," RBI said.

"The rescheduling of payments 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," RBI added.

The RBI also cut repo rate by 75 basis points and also cut cash reserve ratio by 100 basis points.

Besides that the central bank announced different measures to improve liquidity in the financial system. These measures will help lower interest rate in the overall banking system, making EMIs cheaper.

Leading banks like Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank and the IDBI Bank took to Twitter and announced that they have provided a three-month moratorium on payment of EMIs, interest on loans. terms loans etc.

Here are tweets attached below:

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. @DFS_India @DFSFightsCorona #fightagainstcorona

— Indian Overseas Bank (@IOBIndia) March 31, 2020

As per COVID 19 regulatory package of RBI, Indian Bank allows a moratorium by deferring payment of EMI/ Term Loan Instalments & Interest/ Interest on Working Capital for 3 months wef 1st March 2020. @DFS_India @DFSFightsCorona

— Indian Bank (@MyIndianBank) March 31, 2020

An important update from us at UCO Bank. @DFSFightsCorona @DFS @RBI @PMO @IBA @FinMin @MOH #COVID19 #Corona #eBanking #mBankingPlus https://t.co/I8LhPmxJ2B pic.twitter.com/EDBxA97rZN

— UCO Bank (@UCOBankOfficial) March 31, 2020

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. @DFS_India #COVID pic.twitter.com/NGuw1pARiv

— Canara Bank (@canarabank) March 31, 2020

Deferment if 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.#COVID19 #IndiaFightsCorona @DFS_India

— Punjab & Sind Bank (@PSBIndOfficial) March 31, 2020

EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans falling due after 1st March 2020 and upto 31st May 2020 have been deferred by 3 months.@mmahapatra@DFS_India#syndicatebank

— SyndicateBank (@syndicatebank) March 31, 2020

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. (1/2) @DFS_India @nsitharaman @FinMinIndia @nsitharamanoffc @DFSFightsCorona

— IDBI BANK (@IDBI_Bank) March 31, 2020