All you need to know about HDFC Bank’s EMI moratorium

We take look at HDFC Bank, the country’s largest private sector bank (by market valuation), and find the details of the moratorium provided by it to its customers on term loans, according to the details furnished on their website.

What is the eligibility criteria?

According to the bank, all those customers who have availed of a retail instalment loan or any other retail credit facilities prior to March 1, 2020, are eligible to opt for the moratorium. Those customers who have overdues prior to March 1 may also opt for the scheme, and their requests shall be considered by HDFC Bank based on their merits.

It further says that all agricultural loans (Kisan Gold Card) and microfinance customers under HDFC Bank’s Sustainable Livelihood Initiative will also be eligible for the moratorium. This apart, all corporate, as well as SME customers of the bank, will also be eligible. The bank’s Relationship Managers will get in touch with such customers or they can contact them to get detailed information.

What happens if a person chooses the EMI moratorium?

If a customer chooses the EMI moratorium, then the bank won’t ask for any payment of EMIs till May 31, 2020. The interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan. The tenure of the loan will get extended by the corresponding period for which the moratorium has been availed.

For example, the bank explained that if the EMI for the month of March has been paid and a moratorium for April and May has been availed, then the loan tenure will be extended by two months.

What if someone doesn’t want the EMI moratorium?

According to the bank, if any customer does not want the moratorium of EMI, then no further action is required from their side. HDFC Bank will continue to abide by its existing repayment instructions.

The bank says that it encourages its customers with adequate funds to continue paying EMIs during this period so as to avoid the extra interest charges and tenor extension. However, it clarified that if a person skips their EMI payment during this period, it is understood that they require the moratorium until May 2020.

What if a customer’s account automatically gets debited?

According to HDFC Bank, it depends on the customer’s choice to opt for the moratorium. “We understand that all our customers may not opt for the Moratorium given that there is an additional levy of interest payable under the terms of the moratorium. If you wish to opt for the moratorium, we would be happy to refund the EMI debited and register your loan account under the moratorium process,” the bank said on its website.

What are the charges if a customer avails this moratorium?

If someone avails the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the outstanding loan. Such interest will be collected by extending the original tenor of the loan accordingly.

How does a customer apply for this moratorium?

The HDFC bank customer will have to provide their consent to the bank through any of the following ways:

Either, by calling on 022-50042333, 022-50042211 and following the instructions or by submitting their request online by visiting https://apply.hdfcbank.com/vivid/afp?product=mo

Customers must keep their loan account number ready before they begin the process.

What if someone has more than one loan from HDFC Bank, will they get moratorium for multiple loans?

Yes, according to the bank, one can opt for the moratorium for each loan that they have availed. However, one should remember that additional interest for the EMI moratorium period will be applicable for each loan separately.

Does moratorium affect a customer’s credit rating?

No. Opting for the moratorium will not affect your credit rating or score, the bank said.

Does this moratorium apply for credit card outstanding and loans on credit cards?

Yes, the moratorium is available on credit card outstanding and loans availed on credit cards for payments due from Mar 1 till May 31. The moratorium allows a customer to defer payments till May 31. Such HDFC Bank customer is required to pay the minimum amount due or total outstanding and accrued interest charges on the due date after May 31, 2020.

How to avail credit card moratorium?

To avail the credit card moratorium, HDFC Bank has said:

• voluntarily defer paying the outstanding during this period i.e. make NIL payment.
• turn off Auto Pay (in case the same is currently availed) through net banking/mobile banking to avail the benefit of the moratorium and reactivate the same post the end of the moratorium period.

Will interest be levied for moratorium period on credit cards – both outstanding and loan?

Yes, interest will be levied as per the contracted rate on the card. Opting for three months moratorium allows you to defer the payment of your credit card dues and loan instalments taken on credit card till May 31.

The bank said that it encourages customers to make full payments towards the outstanding wherever possible to avoid/minimise levy of interest charges for the moratorium period.