Deferment Of EMIs: What Customers Of Private Banks Should Do To Avail It

Several public sector lenders like State Bank of India (SBI), PNB, Bank of Baroda have announced the deferment in loan EMIs and interest dues to help customers in overcoming financial complications because of the coronavirus outbreak followed by the  21-day nationwide lockdown. "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 March 1, 2020 to May 31, 2020 and extended the repayment period by 3 months. The interest on working capital facilities for the period March 1, 2020 to May 31, 2020 is also deferred to June 30, 2020," country's largest lender SBI said.

While announcing the relief package, the Reserve Bank of India left the implementation part to be taken care of by respective banks. Unlike public sector lenders, several private has said that the auto-debit facility for loan installment will not be cancelled.

What Customers Of Private Banks Need To Do?

If customers of private banks want to hold equated monthly installments (EMIs), they will have to personally call or inform the bank by sending an e-mail to the concerned bank.

"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. Customers are requested to visit icicibank.com to specify choice," the private lender tweeted.

Similarly, HDFC bank said that it is offering option to its customers to defer payment. “Important Announcement about HDFC Bank Loan EMI!... We offer you the OPTION to defer your payment for Apr & May…. Call…,” reads the SMS sent by the bank to its customers.

On March 27, the RBI had announced that all term loans, including retail and crop loans and working capital payments, will be covered by the three-month moratorium.

Banks will now have discretion in deciding the limits on working capital, with the RBI saying that no payment miss should be considered a default and reported to credit information companies.