Banks to launch EMI waiver options soon
Mayur Shetty | TNN
Mumbai: Banks will soon come out with the operating procedure for retail borrowers to take advantage of a three-month moratorium on their loans. Most lenders plan to send text messages and emails that allow borrowers to use the facility, while some have already done so.
The State Bank of India said its technical team was working on the circular, and giving an option may take some time as this requires changes to current systems and procedures. The bank told customers that if a EMI was charged and wish to take advantage of the moratorium, you can contact the branch to start the refund process. ICICI Bank Sources said he was working late into the night to create a channel to give customers an option. On Monday, the banks held a video conference under the Indian Bank Association, where it was decided that the option should be extended to all borrowers. , the country's largest home finance company, said it would start sending options to borrowers on whether to take advantage of the moratorium or not.
Lenders generally stressed the point that the moratorium was not an interest exemption and that the interest for the three months would be recovered from the borrower. They also emphasized that borrowers whose cash flows were unaffected should continue to pay their installments as usual.
Meanwhile, to reassure borrowers, a large number of public sector banks turned to social media to say that a moratorium would be made available. Bank of Baroda said it was providing the moratorium on all installments due between March 1 and May 31 for all term loans, including businesses, medium and small businesses.
“EMI s of housing loans, vehicle loans, MSME loans and payment of all other term loans falling due after March 1 and up to May 31 have been deferred by 3 months,” Syndicate Bank said. UCO Bank told borrowers that it has granted moratorium of three installations of term loans up to May 31. “The next installation is now payable in June 2020. Your repayment schedule will be extended accordingly,” the bank said.
Central Bank of India indicated in a tweet that the moratorium will be given to all. Three months deferment is automatic&customersneednotapproachbankforthesame,thebanksaid.however,customersmayapproachthebanktochangethestandinginstructionsoranyothermandategivenbythemforpaymentoftheirloaninstallation.interestwillaccrueinloanaccountsbutnocriminalinterest.march20installationalreadypaidwillbeautomaticallyappropriatedtowardsnextemidue,thatisforjune20,”thetweetsaid.