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Overview

In accordance with RBI COVID-19 Regulatory Package, we at IndusInd Bank would like to offer our customers the option of moratorium of up to 3 months on the payment of Loan EMIs and Credit Card dues. You can now choose to defer your Loan EMIs and/or Credit Card dues falling between March 1, 2020 and May 31, 2020.

Regulatory measures and reliefs announced by RBI in view of COVID 19 –
RBI Governor’s in its statement issued on March 27, 2020 had outlined / announced certain regulatory measures to mitigate the debt-servicing burden on borrowers in view of the disruptions brought out by the current COVID – 19 situation.  RBI has also issued a circular RBI: 2019-20:186 DOR.No.BP.BC.47/21.04.048/2019-20, dated March 27, 2020, detailing the guidelines.  

 Relief provided by RBI in the circular:
a) Moratorium of three months on payment of all term loan instalments falling due between March 1, 2020 and May 31, 2020 for all term loans.  Instalments include all principal and interest payments, bullet repayments, EMIs, and credit card dues falling due between these dates.    The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.
b) Defer the recovery of interest applied in respect of all working capital facilities during the period from March 1, 2020 up to May 31, 2020 in respect of facilities sanctioned in the form of cash credit / over-draft (CC/OD).
c) Recalculate the ‘drawing power’ by reducing the margins and/or by reassessing the working capital cycle for all the existing CC/OD borrowers. This relief shall be available in respect of all such changes effected up to May 31, 2020 and shall be contingent on the lending institutions satisfying themselves that the same is necessitated on account of the economic fallout from COVID-19.
d) Since the moratorium/deferment/recalculation of the ‘drawing power’/ reassessing the working capital cycle are being provided specifically to enable the borrowers to tide over economic fallout from COVID-19, the same will not be treated as concession or change in terms and conditions of loan agreements due to financial difficulty of the borrower.  Hence, these reliefs will not result in downgrading of asset classification of the borrower.
e) This also will not qualify as a default for reporting to Credit Information Companies and also under supervisory reporting

 Bank’s policy for providing the said relief to borrowers:
This policy applies to the credit facilities granted and disbursed by the Bank and outstanding as on March 1, 2020. 
The Bank would separately issue terms and conditions specific to different types of loans and facilities. Other terms and conditions contained in sanction letter of the loan/facility would remain unchanged.
The Bank will offer to all borrowers the facility of moratorium (for term loan instalments and credit card dues falling due between March 1, 2020 and May 31, 2020) and / or deferment of interest for the months of March 1, 2020 to May 31, 2020 to all borrowers who availed working capital facilities.
The Bank would continue to accrue and will be charging the interest, at the original contracted rate, for the moratorium period on the outstanding amount of loan to all those who has been given the relief as provided in the RBI circular.  This interest has to be paid by the customers as prescribed in this policy.  However if any customer would like to pay the amounts during the moratorium period, it would be allowed.

A. Moratorium for Term loans:
The repayment schedule of term loans will shift by up to three months and the tenor of the term loan will be commensurately extended. The instalment amounts / EMIs will be appropriately recalculated, including interest during moratorium period.  
If borrowers have already paid their instalments or serviced their interest for March 2020, such borrowers can avail moratorium for installments falling due in April and May 2020. 

B. Relief for working capital facilities:

(a) Deferment of interest:
In the case of Overdraft / Cash Credit, including KCC Loans, the Bank will offer deferment of interest applied to all borrowers for the period between March 1, 2020 to May 31, 2020. 
The accumulated interest for this three-month period should be serviced by the borrower immediately after the moratorium period i.e. on 01st June 2020.
 (b) Reduction of margin:
For customers facing stress on account of the economic fallout of the pandemic, the Bank will consider reduction of margin on stocks/receivables/other eligible securities, etc., for the purpose of computation of Drawing Power (DP) for OD/CC limits and allow higher DP than earlier, based on impact on borrower basis due credit assessment.   Such concession in reduction of margin would be valid in respect of all changes effected up to 31st May 2020 for such period as the Bank assesses or such extended time as per the impact assessment on working capital cycle.  After such period, the margin would be reverted to pre-relief margin stipulated by the Bank.
 (c) Reassessment of working capital cycle / limits 
For customers facing stress on account of the economic fallout of the pandemic, the Bank may re-assess the working capital cycle factoring the COVID19 impact on customer’s business   
In case the working capital arrangement is under a Consortium, the reassessment of limits will need to be harmonized with the assessment of the Lead Bank of the Consortium.
Once the original limit is reinstated, any further concession / enhancement would have to be dealt with as per the usual restructuring norms stipulated by RBI.
Eligibility to avail relief under B (b) and (c)
All borrowers availing working capital facilities in the nature of : CC or OD or EPC/ PCFC or  bill discounting / Letters of Credit   / Gold Metal Loans etc., and whose working capital requirement / cycle is impacted by the pandemic, resulting in:  cancellation / deferment / re-schedulement of orders  / shutdown of  unit / work place,  non-availability of manpower/ transportation to complete the manufacturing / sale of goods / services,   non-realization of  debtors  or elongation of realization period  will be eligible for requesting for relief under this provision, 
The bank will grant such relief under paras B (b) and (c) subject to meeting the credit assessment of the Bank.   The customers may approach through their respective servicing branches or relationship managers.

C. General Conditions :
The Bank will take into account the stress on the borrowers on account of the pandemic.
The borrower should not be under IBC proceedings.
The borrower should not have been classified as wilful defaulter/ RFA/ Fraud classified by any  Banks.
The borrower should not have been classified as NPA. 

 D. Validity of the policy:
This policy shall be valid up to 31st May 2020 or further period as may be extended by RBI.

E. Prudential norms:
The moratorium/deferment granted to borrowers will not qualify as default on the part of borrowers for the purposes of supervisory reporting and reporting to credit information companies (CICs).
The reliefs given as above as per the special dispensation given by RBI will not result in any downgrade of asset classification.  However, if there is an existing default like interest/principal due up to February 29, 2020, the usual asset classification and provisioning norms will apply.
Bank reserves the right to amend the policy within the framework of RBI regulations

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