Which bank is giving automatic loan moratorium and which is not: Here's the list

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Navneet Dubey

, ET OnlineLast Updated: Apr 09, 2020, 09:42:00 AM IST

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Synopsis

To pay this additional interest, 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 of the interest in June month.

While some banks and non-banking finance companies (NBFCs) are asking their borrowers if they want to avail the loan repayment 3-month moratorium, others are automatically 'opting-in' their borrowers for taking the loan moratorium.. Here's how to find out whether you bank will automatically opt you in for the moratorium or you will have to reach out to the bank to ask for it.

Following a nudge from RBI, Banks and NBFCs have offered borrowers a three-month moratorium on payment of loan instalments starting March. If you take the moratorium , your credit score will not be affected. However, you will have to pay additional interest for three months (for deferring equated monthly installment (EMIs)) to your lender.

To pay this additional interest, 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.

Hence, borrowers should keep a close watch for any loan-related communication from their lenders. Alternatively, 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.

Check out 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 ask 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 moratorium@idbi.co.in 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 retailbankingwing@canarabank.com in case you do not receive the SMS from bank.
IDFC FIRST Bank	Automatic relief for rural and agricultural customers. For other loan, relief only if customer demands	To apply for the moratorium, send sms to 8007010908 or email to help@idfcfirstbank.com
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 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 moratorium Bank 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 mailing at option@federalbank.co.in. Retail loan customers can opt for moratorium by mailing at option@federalbank.co.in.
HDFC Bank	Relief only if customer demands	To provide your consent for moratorium on loan EMIs call on 022-50042333 or 022-50042211 and follow the instructions or submit your request on the bank's website.
Kotak Mahindra Bank	Relief only if customer demands	Send email at pay.later@kotak.comto ask for moratorium
Bajaj Finserv	Relief only if customer demands	Send email at wecare@bajajfinserv.into ask for moratorium
PNB Housing	Relief only if customer demands	Avail moratorium through website link, short code SMS at 56161, email and missed call at 8743950000
Indiabulls Housing	Relief only if customer demands	Avail moratorium through website link or email at covid19emi@indiabulls.com
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 to 561615
Standard Chartered Bank	Automatic relief in case of loans	To opt out of moratorium, send SMS <>space 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 for moratorium by default. Send SMS or email to bank accordingly.
Bank of India	Automatic relief	Approach branch to continue paying

Source: Paisabazaar.com

Point to note

Moratorium simply refers to a legal authorisation to existing borrowers to defer or postpone their loan repayments for a pre-determined period. It is not a loan waiver. You will have to repay the outstanding loan amount after the end of the moratorium period. You will also have to pay an additional interest, as mentioned above, for the period of the moratorium for deferring the EMIs.

( Originally published on Apr 07, 2020 )