To a great relief to borrowers, several major lenders have announced the postponement of EMI payments on term loans for the next three months, acting on instructions from the Reserve Bank of India (RBI). On March 27, the central bank ordered all banks to grant a three-month moratorium on repayment of term loans. This was done in order to inject liquidity into the system as the economy is hit hard by the novel coronavirus outbreak.
“In line with RBI’s Covid19 relief program, ICICIBank offers its customers the choice of paying off their loans / credit facilities or going on a moratorium until May 31, 2020,” ICICI bank said in a tweet.
“The borrower (s) / clients can choose to register or withdraw, to take advantage of the moratorium on the credit facility (s) used,” ICICI bank said on its website.
“ICICI Bank has, in accordance with the approved policy of the Bank, extended the moratorium to borrowers / customers for certain loans / credit facilities such as Kisan Credit Card (KCC), Agricultural Equipment (FE), Group of ” mutual aid (SHG) / Joint Lending Group (JLG) / Loans granted through a commercial correspondent (BC), Jewel Loan, Corporate Farmer Finance, Business Lending -Unsecured (current account overdraft / Small business loan / Roaming Protect / Credit Card Loan Receivable, Dealer Financing, Working Capital / Commercial Advance to Car Dealers, Business Affairs, Working Capital / Commercial Advance to Commercial Customers, Consumer Finance, Two Wheel Loans. “
The bank further stated that customers / borrowers who do not wish to avail themselves of the moratorium can opt out by clicking on the link shared by the bank. ICICI Bank shared the link via SMS and email, so if you don’t want to take advantage of it, you can unsubscribe. You can also visit the ICICI Bank website www.icicibank.com failing which the borrower / client will be considered to have opted for Moratorium.
“With respect to all other types of facilities, borrowers / clients will specifically need to register to avail themselves of the moratorium and defer due payments between the period beginning March 1 and May 31, 2020,” noted the Bank
How can I opt for the moratorium?
You can opt for the moratorium by clicking on the link shared with you by the Bank by (i) SMS or (ii) e-mail. You can also visit the ICICI Bank website www.icicibank.com.
If I have a sufficient balance in my account and the payment of my loan (s) is due, will the Bank debit the EMI during this period?
Yes, if you have not opted for the moratorium.
Most public sector banks have announced their decisions on this on social media platforms. State Bank of India (SBI) in a tweet said, “In terms of the RBI COVID19 regulatory package, SBI has taken action to defer payments and interest / IME on term loans maturing between March 1, 2020 and on May 31, 2020 and extended the repayment period of three months. “
The bank has informed customers if they do not wish to invoke the moratorium, no action is required on their part. However, those who wish to benefit from the moratorium will have to send a request to the bank by email.
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