The Reserve Bank of India’s (RBI) three-month loan repayment moratorium scheme has left a lot of loan users across the country confused. Many users are not completely aware of the terms and conditions of the scheme and even if they do by now, they are perplexed about how they can avail it.
While there are some banks which are offering the loan moratorium to their customers directly regardless of whether they require it or not, other banks have asked their customers to opt-in for this scheme.
Coming to private banks, most of India’s private sector lenders have decided to go for the ‘opt-in’ option for their customers and have asked them to inform the bank in case they wish to opt for the three-month moratorium period.
HDFC Bank, the country’s largest private sector bank (by market valuation), is encouraging its customers who have adequate money with them to continue with their EMI repayments so as to avoid the additional interest charges and tenor extension of their loans. The bank has also provided all the details and process on how to apply for its customers. Just like HDFC Bank, other private banks such as ICICI Bank, Kotak Mahindra Bank, Axis Bank etc. too, have chosen this method wherein a loan account holder requires to inform the bank about his decision to opt for the three-month moratorium scheme.
Coming to public sector banks, the country’s largest public sector lender State Bank of India (SBI) has followed the footsteps of its private sector counterparts by choosing the ‘opt-in’ method. So all SBI loan account customers who want to avail the moratorium will have to inform the bank.
SBI has already informed its customers who have standing instructions to their banks that if they don’t want to avail the moratorium, no action is required from their end as the monthly EMI will be deducted from their accounts. However, those who want to avail the moratorium will have to send an application to the bank through an email.
Just like the SBI and many private banks, Canara Bank too has gone for the ‘opt-in’ route.
However, IDBI Bank, which is a subsidiary of India’s largest life insurer Life Insurance Corporation of India (LIC), has chosen the other method that is ‘opt-out’ route. Loan account holders of this bank, who DO NOT wish for the loan moratorium would require to send an email to IDBI Bank by April 3.
Now it must be noted by all the loan users of every bank that if they have decided to go for the moratorium, the tenure of their loan will get extended by three months over the original repayment tenure. Example, if your loan was to mature on March 31, 2021, it will now mature on June 30, 2021.
In the present scenario, some loan users might have already paid their instalments for March. In such a case, the tenure will get extended by two months and not three months.
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