SBI, ICICI, Canara Bank and others take up RBI permit, defer EMIs for 3 months

RBI had announced that all banks and lending institutions can allow a three-month moratorium on all term loans outstanding as of March 1, 2020.
SBI, ICICI, Canara Bank and others take up RBI permit, defer EMIs for 3 months
SBI, ICICI, Canara Bank and others take up RBI permit, defer EMIs for 3 months
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A day prior to April when interest and EMI payments start kicking in, many banks in India took up the RBI’s permission to defer interest on term loans for three months, for the period starting March 1. Term loans are any loan that is paid in regular instalments over a period of time, and includes personal loans, education loans, vehicle loans and more. 

On March 27, the Reserve Bank of India announced that all banks and lending institutions can allow a three-month moratorium on all loans outstanding as of March 1, 2020. This includes all forms of retail loans, EMIs and credit card dues.

The State Bank of India in an earlier call had decided to defer the interest. 

The full list of banks deferring interest on term loans:

> Syndicate Bank (which was recently merged with Canara Bank): “EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans falling due after 1st March 2020 and upto 31st May 2020 have been deferred by 3 months,” it said.

> Punjab and Sind Bank: PSB said that deferment of instalments towards March, April and May is available. 

> UCO Bank granted the three-month moratorium until May 31, 2020, and said that the next instalment is payable in June. “Your repayment schedule will be extended accordingly,” the bank said. 

 > Indian Bank (being merged with Allahabad Bank) said that the three-month moratorium on instalments and interest on term loan and working capital was allowed, but did not provide any details. 

> Indian Overseas Bank stated that borrowers were eligible for moratorium/deferment on their instalments, but did not clarify if the same was to be opted for. 

 > Punjab National Bank (merged with the United Bank of India and Oriental Bank of Commerce) said that all instalments and interest payments on term loans and working capital are deferred for March, April and May, and payment period is being extended accordingly.

 > Union Bank of India (merged with Andhra Bank and Corporation Bank) - Union Bank of India announced that instalments can be deferred for the period between March 1 and May 31. There are no details regarding whether one needs to opt in for the same. 

 > ICICI did not make an announcement but confirmed to TNM that they will be deferred. 

 > Bank of India said that the deferments were being made across the board, and further details can be obtained from the bank branch. 

 > Central Bank of India stated that the moratorium was allowed — and outlined that interest on term loans, lump sum payments towards outstanding dues, EMIs and credit card dues will be deferred across the board for three months, and the payment schedule will be pushed accordingly.  

 > Allahabad Bank announced that EMIs were being on all loans by three months and were offering new loans as well. 

 > IDBI Bank gave customers the option to opt in for a moratorium for three months. “Customers whose cash flows are not impacted and wish to continue payments are allowed option to pay as per existing schedule,” it said.  

> Bank of Maharashtra also said that the deferment was allowed for the period of the moratorium up until May 31 on all term loans “by increasing tenor of loan with applicable interest, without affecting Credit Score.” However, if people have a standing instruction with the bank to repay, it’ll continue till the borrower withdraws it. People who wish can continue to pay the loan. 

> Bank of Baroda said that the 3-month moratorium was being provided. 

 So far, HDFC Bank, Kotak Mahindra Bank, Axis Bank, Yes Bank, Karnataka Bank, City Union Bank, Federal Bank, IndusInd Bank and South Indian Bank have not made any announcements. This copy will be updated with any developments. 

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