SBI gives covid relief, extends loan EMI moratorium; starts notifying borrowers via SMS

The State Bank of India (SBI) has extended the moratorium on loan equated monthly instalments (EMIs) automatically by another three months in loan accounts of all eligible customers without waiting for their request.

On May 22, the Reserve Bank of India (RBI) announced an extension of the moratorium on loan EMIs by three months, i.e., August 31, 2020 in a press conference dated May 22, 2020. The earlier three-month moratorium on the loan EMIs was ending on May 31, 2020. The extension of the three-month moratorium on repayment of term loans by borrowers means that they would not have to pay the loan EMI instalments during the moratorium period, i.e., for these six months.

According to the PSU lender's press release, it has "proactively reached out to all of its eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) / NACH mandate for the EMIs falling due in June, July and August 2020."

For this, the bank has simplified the process of stopping the EMIs by initiating an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs.

Borrowers will have to reply with a 'YES' to a designated virtual mobile number (VMN) mentioned in the SMS sent by the bank within 5 days of receiving the SMS, if they want to defer their loan EMIs.

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