Which Banks Have Automatic Loan Moratorium? How To Delay Your EMI? (Complete List, Steps)
As per the reports, some banks and non-banking finance companies (NBFCs) are asking their borrowers if they want to avail the loan repayment 3-month moratorium, while others are automatically ‘opting-in’ their borrowers for taking the loan moratorium.
How Does It Work?
You must be worried about how to find out whether your bank will automatically opt you in for the moratorium or you will have to reach out to the bank to ask for it.
Here are the details about the same.
Following guidelines from RBI, Banks and NBFCs have offered borrowers a three-month moratorium on payment of loan installments starting March.
How will this help? Well if you take the moratorium, your credit score will not be affected.
Although, you will have to pay additional interest for three months (for deferring equated monthly installment (EMIs)) to your lender.
Next comes the question about how to pay this additional interest.
The answer is, you may get an option to either increase your loan tenure without increasing your EMI amount or increase your EMI amount without increasing your loan tenure or make a one-time payment in June of the interest that accrues in March, April and May.
That’s why the borrowers should keep a close watch for any loan-related communication from their lenders.
Another way would be, they can also contact their lending institutions on whether they need to specifically request their lenders to stop the auto-debit of EMIs or interest in case they want to avail the moratorium.
How To Find About Your Bank?
You can check out here about which banks and NBFCs are asking their borrowers whether they want to avail the loan repayment moratorium, which are choosing the default ‘opt-in’ option and which will offer the moratorium only if the borrower asks for it on their own.
|Name of lender||Default option||How to stop/pay EMI|
|State Bank of India||Relief only if customer demands||Send email to ask for moratorium in case of loan EMI.|
|IDBI Bank||Automatic relief||Send email to [email protected] to opt out of moratorium|
|Canara Bank||Relief only if customer demands||Reply to the SMS sent by bank as ‘NO’ to stop deduction on mobile no. 8422004008. Send email to [email protected] in case you do not receive the SMS from the bank.|
|IDFC FIRST Bank||Automatic relief for rural and agriculturalcustomers. For other loan, relief only if customer demands||To apply for the moratorium, send sms to 8007010908 or email to [email protected]|
|ICICI Bank||Automatic relief in case of 2 wheeler loans,business loans, farm loans and jewel loans.For other loans, relief only on customer demand.||Visit the bank website for loans eligible and not eligible for moratorium by default. Send SMS or email to bank accordingly.|
|Central Bank of India||Automatic relief||Approach bank to continue paying|
|UCO Bank||Automatic relief||Approach bank to continue paying|
|Bank of Baroda*||Automatic relief but wherever the borrower has given mandate for standing instructions/ECS/NACH, Bank will continue to honour borrower’s mandate.||Send email or letter to ask for moratoriumBank is also in the process of sending SMS to borrowers for seeking permission|
|Federal Bank||Automatic relief in case of Business loans of up to Rs 5 crore, Agriculture, Micro Lending and Gold loan. Relief on business loans above Rs 5 crore & retail loans only if customer demands||Agriculture, Micro lending & Gold loan customers can opt out of moratorium by mailingat [email protected] Retail loan customers can opt for moratorium by mailing at [email protected]|
|HDFC Bank||Relief only if customer demands||To provide your consent for moratorium on loan EMIs call on 022-50042333 or 022-50042211and follow the instructions or submit your request on the bank’s website.|
|Kotak Mahindra Bank||Relief only if customer demands||Send email at [email protected] ask for moratorium|
|Bajaj Finserv||Relief only if customer demands||Send email at [email protected] ask for moratorium|
|PNB Housing||Relief only if customer demands||Avail moratorium through website link, short code SMS at 56161, emailand missed call at 8743950000|
|Indiabulls Housing||Relief only if customer demands||Avail moratorium through website link or email at [email protected]|
|Repco Home Finance||Automatic relief||Opt out of moratorium by visiting the website or through email|
|Punjab & Sind Bank||Automatic relief||Send ‘NO’ through SMS to 8652634668 to opt out of moratorium|
|HSBC Bank||Relief only if customer demands||Apply online through the link https://www.hsbc.co.in/help/coronavirus/|
|Deutsche Bank||Automatic relief||To opt out of moratorium, send SMS <CONTINUE> to 561615|
|Standard Chartered Bank||Automatic relief in case of loans||To opt out of moratorium, send SMS <<OPTOUT>>space<Loan Account No> to 8693800500|
|Axis Bank||Automatic relief in case of gold loans, KCC loans, Farmer loans, Microfinance loans, Commodity loans, Tractor loans, Commercial Vehicle loans, Construction equipment loans, Business loans and Unsecured overdraft & term loans(Small Business Banking). For other loans relief only on customer demand||Visit bank website for loans eligible and not eligible formoratorium by default. Send SMS or email to bank accordingly.|
|Bank of India||Automatic relief||Approach branch to continue paying|
Here it is noteworthy is, Moratorium simply refers to a legal authorization to existing borrowers to defer or postpone their loan repayments for a predetermined period.
Also, it is not a loan waiver and you will have to repay the outstanding loan amount after the end of the moratorium period.
Further, you will also have to pay an additional interest, as mentioned above, for the period of the moratorium for deferring the EMIs.