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COVID-19 Regulatory Package

RBI vide its guideline on COVID-19 Regulatory Package dated May 23, 2020 (Ref no. DOR.No.BP. BC. 71/21.04.048/2019-20) has issued instructions with regard to certain regulatory measures which were announced to impart priority to relaxing repayment pressures and improving access to working capital by mitigating the burden of debt servicing, prevent the transmission of financial stress to the real economy, and ensure the continuity of viable businesses and households.


In view of the extension of lockdown and continuing disruption on account of COVID-19, we extend our support by offering moratorium on payment of the term loan instalments/deferment of interest in respect of working capital facilities sanctioned in the form of Cash Credit/Overdraft (“CC/OD”) to our borrower(s) who may be financially impacted.


The following loan products/credit facility(ies) will continue, at the discretion of the Bank, to be under moratorium/ interest deferment:

  • Retail Micro Finance (MFI) & Govt. Sponsored schemes(from June 1, 2020 to August 31, 2020)
  • Kisan Credit Card (KCC) & Farmer Loans (Cash Credit & Over draft)(from June 1, 2020 to June 30, 2020)

The moratorium extended ​basis the earlier notification for the following products/ credit facilities ends on 31st May, 2020 :


I. All other loans/credit facility(ies), like Home Loan, Auto Loan, Personal Loan, Credit Card, Education Loan, Loan Against Property, Loan Against Shares, 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) and Working Capital & Overdraft products under Retail Loan, Rural Loan & SBB Loan.


In respect of above, borrower(s) who is/are facing cash flow constraints and is/are in financial difficulty due to the disruptions on account of the Covid-19 pandemic need to specifically request/ OPT-IN for moratorium on instalments/deferment of payments falling due between June 1, 2020 and August 31, 2020.


Borrower(s) who wish to avail the moratorium may choose to Opt for moratorium by clicking here

FAQS: RBI Moratorium on Loans

As per the recent RBI guidelines released on May 23, 2020 all financial institutions are permitted to extend the moratorium by another three months i.e. from June 1, 2020 to August 31, 2020. (Moratorium Period) on payment of all instalments in respect of term loans (including agricultural term loans, retail and crop loans).

In respect of working capital facilities sanctioned in the form of Cash Credit/Overdraft (CC/OD), financial institutions are permitted to allow a deferment on recovery of interest applied in respect of all such facilities of another three months, from June 1, 2020 to August 31(Moratorium Period).

 

A moratorium period for term loan means a period wherein the instalments need not be paid for that time period.

It is only a deferment of the instalment(s) to be repaid and not a concession or waiver with respect to repayment. Interest shall continue to accrue on the outstanding portion of the loan during the moratorium period at the applicable rate of interest.

For Cash Credit/Overdraft (CC/OD) accounts, deferment of interest will mean non-payment of interest which falls due during the requested moratorium period. However, the interest will accrue and accrued interest would be recovered immediately after the completion of this period.

Alternatively, the borrower(s) may apply to the bank for converting the accumulated interest for the deferment period up to August 31, 2020, into a Funded Interest Term Loan (FITL) which shall be repayable not later than March 31, 2021. Such provision of FITL is at the sole discretion of the Bank.

For all individual borrower(s)/non individual borrower(s) (where the loan outstanding amount is less than or equal to Rs. 500 Lacs), there will be no further requirement of the documents. However, it is to be declared that the borrower(s) is/are financially impacted due to COVID 19 pandemic. This is a part of the terms and conditions being accepted while applying for the moratorium.

Non Individual borrower(s) where outstanding loan amount is more than Rs. 500 Lacs would be required to submit a detailed form (as specified by the bank) wherein borrower(s) justify(ies) the requirement of moratorium/deferment of interest/instalment. Process of application would be facilitated by bank’s representative. Basis the information provided, bank may permit the same at its discretion.

 

It is recommended that the option of moratorium be availed by those borrower(s) whose short term cash flows are adversely affected or who are facing temporary financial constraints arising from the COVID-19 pandemic. You should opt for the moratorium only if you are facing short term cash flow challenges, since interest will continue to accrue for this time period.

By availing the moratorium option, you can defer your immediate instalments or the accrued interest. The repayment would resume from September 2020, once the moratorium period is over.

Availing the option of moratorium allows you the flexibility to defer the instalments or interest payments falling due between June 1, 2020 to August 31, 2020. The interest will continue to accrue on the outstanding principal/utilized amount at applicable rate of interest.
If you choose moratorium,
    For Term loans
  • Bank will not ask for EMI payments falling due between June 1, 2020 till August 31, 2020.
  • Interest will be levied at the applicable rate of interest of the loan for the period of EMI moratorium on the outstanding loan amount.
  • The repayment schedule for such loans will be shifted across the board and the effect of such increase will be given on residual loan tenure thereby increasing the tenure.
    For Cash Credit /Overdraft (CC/OD) accounts
  • For all loan repayable on monthly basis such deferred accumulated interest will be either applied on 1st September, 2020 or the borrower may apply to the Bank for converting the deferred interest into a Funded Interest Term Loan (FITL) for maximum tenure of 6 months starting 30th September, 2020 which shall be repayable not later than 31st March, 2021.
  • For all loans repayable on quarterly, half yearly or annually basis such deferred accumulated interest will be applied on 1st September, 2020 for borrowers who have availed and / or permitted for the extension of deferment of interest. The borrower may apply to the Bank for converting the deferred interest into Funded Interest Term Loan (FITL) for maximum tenure of 6 months which shall be repayable not later than 31st March, 2021.
  • In case of borrowers who had availed the interest deferment from 1st March, 2020 to 31st May, 2020 or any part thereof, they may apply to the Bank for converting the deferred interest into a Funded Interest Term Loan (FITL) for maximum period of 6 months starting 30th June, 2020.
If you have opted for moratorium/interest deferment and at a later date, if you wish to opt out from moratorium / interest deferment, it is permissible.

For e.g. If you have availed the moratorium in the month of June 2020, you may withdraw from moratorium in July 2020 or August 2020. Please ensure that the request is placed atleast 5 days prior to the instalment/interest due date so that Bank can initiate recovery on the upcoming instalment/interest on the due date.
You can withdraw from moratorium at least 5 days prior to the EMI/instalment due date by clicking here for Bank to initiate EMI/ instalment recovery.

In case you wish to make a payment, visit www.axisbank.com/payment
No, there will be no adverse impact on your credit history or credit score in respect of payments due during the moratorium period, if you avail the moratorium option. However, if there any been any principal or interest payment default prior to you availing the moratorium, the adverse impact on credit history or credit score for such defaults will continue.
The moratorium / deferment on instalment / interest can be availed only for the unpaid dues pertaining to period 1st Mar, 2020 to 31st Aug, 2020.
The moratorium will be given to all the loans linked under your Customer ID with the Bank, once you choose to avail it. For e.g. if you have a Home Loan and a Car Loan, you don’t have the option to avail moratorium on one loan and not on the other.

No, there are no separate instructions required from your end. Direct Debit/Standing Instruction will be managed by the Bank upon receipt of a confirmation from your end to avail the moratorium option and the Bank approving it.

No penal charges including late payment penalty and payment bounce charges will be levied during this period on the loan account. However, interest will continue to accrue on the outstanding principal at the applicable rate of interest for the loan.

Please note request once submitted for moratorium/interest deferment will be applicable till 31st August 2020.If you have opted for moratorium and at a later if you want to opt out , it is permissible

Earlier application/request for moratorium was valid till 31 May, 2020. You will have to re-apply for moratorium for June 1, 2020 to August 31, 2020 by applying through www.axisbank.com only if you are facing cash flow constraints and you are in financial difficulty due to the disruptions caused on account of the COVID-19 pandemic.

In case, you do not apply again, the EMI payments/ instalment dues/interest dues will be due for collection with effect from June 2020, as per the cycle date/due date.

If you were extended moratorium earlier, the moratorium period expires on 31st May, 2020, kindly apply again via www.axisbank.com. However, the following products and/or categories will continue to be under moratorium/interest deferment at the discretion of the Bank.

  • • Retail Micro Finance (MFI) & Govt. Sponsored schemes(from June 1, 2020 to August 31, 2020)
  • • Kisan Credit Card (KCC) & Farmer Loans (Cash Credit & Overdraft) (from June 1, 2020 to June 30, 2020)
  • No. Shares can be released only once the moratorium period is over or if you withdraw from the moratorium and clear the accumulated dues.
    No. Since the moratorium on the loan instalments/deferment of interest is being provided specifically to enable you to tide over economic fallout from COVID-19, the same will not be treated as concession or change in terms and conditions of loan agreements.
    No. You can apply for moratorium/interest deferments for instalments/payments falling due between June 1 ’2020 to August 31, 2020 only.
    Yes, it is permitted. In case you have funds, we would encourage you to make the payments towards your loan instalments/dues to avoid additional interest.
    If you have opted for moratorium on your loan instalments for the period June 1, 2020 till August 31, 2020, the Bank will not debit the EMIs during this period.
    SME/Corporate/Wholesale Banking customers can avail the deferment by following these steps:

    Working Capital (CC/OD): Interest from June 01, 2020 to August 31, 2020 in line with regulatory guidelines may be deferred and paid in instalments as a Funded Interest Term Loan from September, 2020 to March, 2021.

    Term Loans: The principal instalment may be shifted further by three months across the board. If requested, the interest due between June 01, 2020 and August 31, 2020 may also be deferred along with instalment.

    Any other facility for which payment is due on a given day (WCDL/ Inventory finance/ bill discounting etc.) : The due date may be deferred by three months from the date ( Due between June 01, 2020 and August 31, 2020) on which such amount becomes due.

    Customers who had availed the moratorium benefit at a date before May 31 ,2020 in line with the regulatory guidelines can click below to apply for extension :- Customers who want to avail the above benefits for the first time considering the current cash flow situation due to impact of COVID-19 are requested to reach out to their Relationship Managers. The customer has to submit the required justification and their need for availing this scheme. The Bank's decision would be final and binding decision in this regard.
    The Bank will consider you as an eligible borrower for providing relief under ‘Easing of Working Capital Financing’ as defined by RBI’s COVID-19 Regulatory package provided your account is standard and you are facing financial stress on account of the prevailing COVID-19 situation.

    If you are interested in availing this benefit, you need to make a request to the Bank by writing to your Relationship Manager. As part of the request, you have to explain how COVID-19 has adversely affected your business with supporting documents/data wherever applicable. Basis that, the Bank will make an independent assessment of your eligibility and review your working capital cycle or drawing power. The drawing power, if changed, will be restored to the original level by March 31, 2021.

    Please note: FAQs can change based on Regulatory clarification.