Canara Bank and IDBI Bank on March 31 have offered a moratorium on term loan instalments in light of the novel coronavirus, or COVID-19, pandemic.
Canara Bank, in a tweet, said:
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In terms of Covid 19- RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 & repayment period gets extended accordingly. SMS also has been sent to customers to avail the same. @DFS_India#COVIDpic.twitter.com/NGuw1pARiv
— Canara Bank (@canarabank) March 31, 2020
On similar lines, IDBI Bank customers have been granted a moratorium on term loan instalments and interest payments up to May 31 with the repayment schedule being extended accordingly. The bank has also offered a deferment of interest payments on working capital loans for borrowed accounts, a move aimed at cushioning the economic fallout of the COVID-19 outbreak.
Also Read | SBI may offer 3-month moratorium on loans to all customers: Report
Frequently Asked Questions
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However, those customers of IDBI Bank, whose cash flows have not been impacted, have been given the option to continue payments.
Customers whose cash flows are not impacted and wish to continue payments are allowed option to pay as per existing schedule. For details, please visit https://t.co/bTPV5wA5IM (2/2)
— IDBI BANK (@IDBI_Bank) March 31, 2020
The Reserve Bank of India (RBI) on March 27 said all financial institutions can provide a three-month deferment on payments of instalments for all term loans that were outstanding as on March 1. The announcement came as a huge relief for individuals, especially middle-class loan borrowers.
Also Read | RBI clarifies on loan moratorium: Are credit card dues included, what happens after 3 months and other vital points you should know
As soon as the moratorium, which will apply for loan instalments falling between March 1 and May 31 ends, the loan tenure will get adjusted to one's repayment, including the interest payment burden.
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