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OPT for Moratorium/Deferment

RBI guidelines on COVID-19 Regulatory Package dated May 23, 2020, permit Banks to offer extension of moratorium on payment of term loan instalments/credit card dues and/or deferment of interest on working capital facility(ies) falling due between June 1, 2020 and August 31, 2020 (Moratorium Period).


The option for moratorium/deferment may be applied/requested if your short term cash flows are adversely impacted or if you are facing temporary financial constraints arising from Covid-19 pandemic.


By opting for moratorium, you will merely defer the payment of your immediate instalments/payments/accrued interest. It is only a deferment option and not a concession/waiver, since interest would continue to accrue during the Moratorium Period at the applicable rate of interest. The repayment would resume from September 2020, once the Moratorium Period is over.


(i) For Loans/credit facility(ies), like Home Loan, Auto Loan, Personal Loan, Credit Card, Education Loan, Loan Against Property, Loan Against Share, Gold Loan, Commodity Loan, Tractor Loan, Two Wheeler Loan, Commercial Vehicle Loan, Construction Equipment Loan, Business Loan and Unsecured Small Business Banking Loan (Overdraft and Term Loan), Kisan Credit Card (KCC) & Farmer Loan (CC & OD) and Working Capital & Overdraft products under Retail Loans, Rural Loans & Small Business Banking, the underlying customers will have an option to OPT IN for the moratorium on payment of loan instalment(s)/deferment of interest falling due between June 1, 2020 and August 31, 2020 by clicking here.


Click here for Terms and Conditions.


In respect of (i) above, borrower(s) who have availed moratorium/deferment for payment of for their loan instalments/credit card dues/ and/or interest dues falling due between June 1, 2020 and August 31, 2020, can withdraw/OPT OUT from moratorium and continue to pay their dues, by clicking here.


Click here for Terms and Conditions.


(ii) The following loan product(s)/credit facility(ies) will continue, at the discretion of the Bank, to be under moratorium/ interest deferment till August 31,2020:


Retail Micro Finance (MFI) and Government Sponsored schemes (GSS)


Borrower(s) having Retail Micro finance loans or loans under Government Sponsored Schemes and who do not wish to avail the moratorium, may choose to withdraw/OPT OUT from the moratorium by clicking here.


Click here for Terms and Conditions.


Here’s what you need to know before you opt for a Moratorium:


Attention:
OPT-IN will result in accumulation of accrued interest on the outstanding amount of loans/credit cards/credit facility(ies) over the Moratorium/deferment period and will consequently increase your overall debt to the Bank. If your cash flows are not impacted and you are financially stable, it is recommended that you should avoid the financial burden of additional interest by choosing not to opt for Moratorium/deferment and by continuing to pay your EMIs/credit card dues/interest regularly. Click here to pay your Credit Card dues. Click here to pay Loan dues.

Have a look at the following illustrations to understand the impact of availing the benefit of Moratorium facility(ies):

If borrower(s) opt(s) for Moratorium for dues falling between June 1, 2020 to August 31, 2020: Assume you make a purchase of Rs.10,000 on May 12, 2020. Your credit card bill gets generated on June 12, 2020, with total amount due of Rs.10,000 by July 2, 2020. If you opt for the Moratorium, you will accrue total interest + GST of Rs.1,273 (assuming interest rate of 3.5% per month). The total amount of Rs.11,273 will appear in your statement on August 12, 2020 and will be due from you on September 2, 2020.

If borrower(s) opt(s) for Moratorium for dues falling between March 1, 2020 to August 31, 2020: Assume you make a purchase of Rs.10,000 on February 12, 2020. Your credit card bill gets generated on March 12, 2020, with total amount due of Rs.10,000 by April 2, 2020. If you opt for the Moratorium (both the first and the second), you will accrue total interest + GST of Rs.2,728 (assuming interest rate of 3.5% per month). The total amount of Rs.12,728 will appear in your statement on August 12, 2020 and will be due from you on September 2, 2020. (Refer FAQs for more details)
If borrower(s) opt(s) for Moratorium for instalment falling due between June 1, 2020 to August 31, 2020: Ms. B has availed a housing loan of Rs.25,00,000 at 8.50% rate of interest p.a., EMI of Rs.21,696 for twenty years (240 months). The principal outstanding as of May 2020 was Rs.24,50,244. If she avails the Moratorium for the period of June 2020 to August 2020, the principal outstanding at the end of August 2020 shall be Rs.25,02,220.

If borrower(s) opt(s) for Moratorium for dues falling between March 1, 2020 to August 31, 2020: Mr. A has availed a housing loan of Rs.25,00,000 at 8.50% rate of interest p.a., EMI of Rs.21,696 for twenty years (240 months). The principal outstanding as of February 2020 was Rs.24,63,081. If he avails the Moratorium for the period March 2020 to August 2020, the principal outstanding at the end of August 2020 shall be Rs.25,67,306.
If borrower(s) opt(s) for Moratorium for interest falling due between June 1, 2020 to August 31, 2020: Mr. X has an OD/CC limit of Rs.25,00,000 at 9% rate of interest p.a. having average utilisation of Rs.25,00,000 during the month of June, July and August 2020. Accrued interest for June, July and August 2020 would be Rs.56,250. This interest would become due and payable on September 1, 2020. Mr. X can opt to pay the said interest immediately or may apply to the Bank for converting it into a Funded Interest Term Loan (FITL) which will be repayable within a maximum period of 6 months but not later than March 31, 2021.

If borrower(s) opt(s) for Moratorium for dues falling between March 1, 2020 to August 31, 2020: Mr. Y has an OD/CC limit of Rs.25,00,000 at 9% rate of interest p.a. having average utilisation of Rs.25,00,000 during the months between March 2020 to August 2020 (6 months). Accrued interest for these 6 months i.e. March 2020 to August 2020 would be Rs.1,12,500. This interest would become due and payable on September 1, 2020. Mr. X can opt to pay the said interest immediately or may apply to the Bank for converting it into a Funded Interest Term Loan (FITL) which will be repayable within a maximum period of 6 months but not later than March 31, 2021. 2021.

Before you proceed, here's what you need to know about the Moratorium:

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