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This is what you need to do if you want to pay, or not pay, your loan EMI for 3 months

Processes vary from bank to bank with some asking customers to write to them to avail the moratorium, while others asking borrowers to inform them to opt out.

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New Delhi: The Reserve Bank of India (RBI) has allowed banks to offer a moratorium for all term loans for up to three months to mitigate the economic effects of the coronavirus outbreak. But the RBI has left it to banks to implement the same.

The banks have published the modalities on their respective bank websites after some prodding from the Narendra Modi government and the central bank. But most have issued advice to borrowers that those who can afford to pay their equated monthly installments (EMIs) should pay as interest will keep accruing on the outstanding balance during the three months.

Most of the state-run banks are allowing customers to ask for a refund of their EMI payments made in March if they so desire.

But what is the process that each bank is asking its customers to follow to avail the option, or in some cases choose against availing the option? Here’s what the 10 major lenders are asking their borrowers to do.


Also read: Global economy could shrink by almost 1% in 2020 due to COVID-19 pandemic: UN


State Bank of India

The country’s largest lender has asked borrowers who wish to defer their EMIs to approach a bank branch or write to specified email addresses. The email ids differ from state to state. Those who don’t want to defer the payments don’t need to inform the bank.

Punjab National Bank

The country’s second-largest lender has asked its borrowers to approach their respective branches and submit a form in a prescribed format to avail the loan moratorium.

Bank of Baroda

The third-largest state-run lender has also asked its customers to inform their respective branches through an email or letter to stop the debit of EMIs. The bank is also sending SMSs to its borrowers seeking permission to stop EMI deduction.

Kotak Mahindra Bank

Kotak Mahindra Bank also requires the customers who wish to avail the moratorium to approach the bank. “All customers who desire to avail the relief under the policy can send an email from their registered mail id to pay.later@kotak.com quoting the Loan account number,” the bank said.

HDFC Bank

Customers of HDFC Bank will have to approach the bank if they want to opt for the loan moratorium. In its FAQs, the bank said customers who don’t want to opt for the moratorium don’t have to take any action.

“Unless customer asks, we will continue normal operations in their account including presentation of EMI loans or collection of interest/instalments,” the bank said.

Axis Bank

Axis Bank has said borrowers of retail loans, like home and auto, and those having credit card dues will have to write to the bank to opt in for the loan moratorium. However, those who have taken loans like commercial vehicle and business loans will be automatically offered the moratorium, and will have to inform the bank if they don’t wish to take it.


Also read: India’s appeal to foreign investors will depend on how it tackles Covid-19 crisis


ICICI Bank

ICICI Bank is also following an approach similar to Axis Bank wherein retail loan customers will have to write to the bank and opt for the loan moratorium. However, the same has been automatically extended to other loans, like business, self help groups and agriculture-related, and borrowers here will have to inform the bank if they don’t want to opt for the moratorium.

Canara Bank

Canara Bank has sent SMSs to their customers seeking a response from them. Borrowers have to respond through a message to the bank if they wish to avail the moratorium.

IDBI Bank

IDBI Bank has extended the moratorium to all its loans. Borrowers of housing, auto, education and personal loans, and those with loan against property can write to moratorium@idbi.co.in by 15 April in a specified format and opt out of the moratorium.

Borrowers of MSME and agriculture loans have to write to covid.optout@idbi.co.in by 7 April or give written request at the nearest branch to opt out of the scheme.

Union Bank of India

The bank requires its customers to write to the bank to stop debit of EMIs from the borrower’s accounts.


Also read: India isn’t alone, 2 billion informal workers around the world are badly hit by Covid-19


 

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26 COMMENTS

  1. For my Kotak bank personal loan, while going their mail, by accidentally i clicked the option for moratorium to know the details. As soon as I clicked,received a message that my request was accepted. Actually I don’t want to avail the moratorium. I didn’t give any of my loan details. I checked for any option to change my request but nothing is available.
    When I contacted kotak customer I was in queue for more than 15 minutes, finally when got connected I was shocked to hear from them that there no option to change my request and i was to avail the moratorium. This is clear case of cheating the customers.
    Even my email to bank is of no use.
    My April EMI got deducted on the due date. I thought everything is ok. But to my shock the EMI got credited back to my account after 13 days. The banks are playing a trick to fleece the customers. I need to cancel my moratorium but I don’t know what to do. I am helpless. Thanks for all the bank’s hidden agendas. This is purely day robbery.

  2. Hello I have taken business loan 6 months back and paying them every month. Few months I had chequ bounce but I paid in the same month. Now bank ppl calling and saying I dnt have option of Manitorium bcoz I have cheque bounce whom shd I complaint pls help

  3. This is heights banks should be sued for the way they are taking consent. They have a single step process and no option anywhere to revert the changes.

    On a click which could be accidental they are completing the process of moratorium. They don’t even approve loans so fast

  4. Applied for car loan moratorium but still the amount got deducted from my account. What to do regarding this ?

  5. Hello
    Public are forced to do or die …..at this point when we need more support from our bank …..the bank say us we r helpful but at our cost(who ever is taken the loan) pay more EMI …….come on banks u r in more profitable …… Any way but this is more profitable to you……
    Thankyou mr bank we now that the corporate our of none …….u (customer)may come we (customer)may go but I (bank)need more profit for ever….

  6. My housing loan/c no 8481.085 from syndicate Bank gomtinagar now canara bank we want to deposit my monthly installment we also submit application to manger Mr Pawan Kumar Tiwari but he refused deduct my installment we also mail to his zo office but no any response given by the bank
    Phone 8400444637

  7. Try your best to avoid this so called moratorium. This is another trap to increase burden on you. Calculate how much extra you have to pay then you’ll realize actual plan of government.

  8. My P A L.A/c is 48136922 on HDFC. I Want moratorium only April/20 or due to credit of my salary lately (declared by Assam Govt ) your ECS can proceed on 13th April/20.

  9. MiRamesh v . I am working from ola Uber no duties that’s why I am not pay EMI vehicle number Ka 53 D 8777 Kotak Mahindra Prime LTD NO 9901003859

  10. I don’t have my car loan account number and I want to i have benefit of moratorium.
    What to do?
    My Car Registered number is
    MH 02 DZ 9775

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