Corona Effect: Loan EMI Payment Relief: Moratorium Period: No EMI till June, 2020, explained.

What is Moratorium means?
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.

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. here is the list:

Name of the lender	Default option
State Bank of India	Automatic relief
Punjab National Bank	Automatic relief
IDBI Bank	Automatic relief
Union Bank of India	Automatic relief
Indian Overseas Bank	Automatic relief
IDFC FIRST Bank	Relief only if the customer demands except for rural and agricultural loans
ICICI Bank	Automatic relief only on 2 wheeler, business, farm and jewel loans. For other loans, only if the customer demands.
Central Bank of India	Automatic relief
UCO Bank	Automatic relief
Bank of Baroda	Automatic relief but wherever the borrower has given a mandate for standing instructions/ECS/NACH, Bank will continue to honour borrower’s mandate.
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
Repco Home Finance	Automatic relief
Punjab and Sind Bank	Automatic relief
Syndicate Bank	Automatic relief
Deutsche Bank	Automatic relief
Standard Chartered Bank	Automatic relief
Axis Bank	Relief only if customer demands except for 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).
Bank of India	Automatic relief

Information Source: Online