Covid - 19, instalments relief FAQs – Consumer Finance Division

FAQs on IndusInd Bank for Term Loans on Commercial Vehicles/ Construction Equipment/ Passenger Vehicles/ Small Commercial Vehicles/ Two Wheelers/ Tractors and Affordable Homes

In accordance with the COVID-19 – Regulatory Package notification dated Mar 27, 2020 issued by Reserve Bank of India (“RBI”) and as may be updated from time to time (“Covid Regulation”), a moratorium of three months is available on payment/repayment of (i) principal and/or interest components; (ii) bullet repayments; (iii) equated monthly instalments; and/ or (iv) Credit Card dues, as the case may be in respect of all instalments/payments falling due between the period beginning Mar 01 until May 31, 2020 (“Moratorium”) 

1. What is the relief RBI has provided for retail loan under COVID 19- regulatory package?

RBI has permitted Banks’ to grant a moratorium of up to three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020 for loans outstanding as of 29th Feb 2020.

Hence the Bank will not raise the instalment demand during the moratorium period (for all eligible loans, as approved by Bank’s Board Policy). Accordingly the residual tenor of repayment schedule will be extended to recover the EMIs payable during the moratorium period along with interest on the same

A revised monthly repayment schedule will be forwarded to you for your noting of the revised repayment structure. Also you may need to give suitable extension/ modified repayment instructions to your bank for the extended EMI structure

2. Is interest payable during the moratorium

EMI (i.e. both interest and principal) need not be paid for these months. However interest will continue to accrue during these 3 months on the outstanding loan amount and be recovered over the extended period – say 3-4 months – e.g. if your loan tenure is 42 months the revised tenure will be 45-46 months during which the EMI and interest will be recovered. It is to be noted that RBI has only granted a moratorium window and there is no interest waiver on your loan.

3. Will the EMI quantum change?

There will be no change to the EMI quantum and thus existing mandates will continue to be used during your original loan tenure. However, there can be change in the last 1 or 2 EMIs to facilitate recovery of the accrued interest during the moratorium period. Fresh mandates may be raised for the tenure extension and interest payable.

4. What is the process to be followed for getting the benefit of instalment moratorium?

The scheme will be uniformly applicable to all standard term loans under CFD Term Loans Program as stated in the subject above as on March 1, 2020. Wherever the March 2020 instalment has already paid by the borrower, the same will be kept as an advance towards June EMI.

5. What I need to do, if I do not want the relief facility?

The scheme is uniformly applicable to all standard term loans availed before March 1, 2020. However if you wish to make the EMI payment during this moratorium period as well and not avail this benefit, then the same can be remitted to your loan account by you. In case, you wish not to avail this deferment benefit you can send an email to reach4loan@indusind.com with the loan details for which you do not want this relief (from your registered Email ID) or you can choose to call us at: 044-4545 5555 or our Toll Free No.1800-102-3333, and provide your loan details

6. Will I be charged late payment charges for the moratorium facility extended by the bank?

Late payment charges will not be levied on your term loan during the moratorium period. However the same will continue to apply for dues prior to 1st March 2020 remaining unpaid.

7. What will happen after the relief period /moratorium is completed?

Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period and will be added in the loan amount outstanding which will be recovered as additional payments post completion of the moratorium period. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months and the deferred EMIs and interest accrued will be recovered over this period.

8. Does this moratorium period affect my credit rating?

No – this moratorium will not affect your credit rating.

9. What will happen to the accounts which are delinquent/ in default/overdue on or before 1st March 2020?

Since the relief is extended for instalments of loan which are due only between 1st March 2020 to 31st May 2020, the instalments/ other amount overdue on or before 1st March 2020 in any of your loan accounts will have to be paid in order to avoid penal charges or down-gradation of account and slippage in credit rating. Recovery action for your overdue before 1st March 2020 will continue and Bank will continue presenting the mandates for such customers on the due dates.

10. If I have sufficient balance in my account and instalment of my loan(s) is due, will the Bank debit the EMI during this period? 

Yes if there are overdue EMI prior to 1st March 2020.  No, if you have opted for the moratorium and there are no OD before March 2020.

11. Does the customer need to submit any documents for availing of the Moratorium?

No specific documents are required to be submitted as the Bank has offered the facility to all its eligible retail term loan customers, as per Bank Policy and as per RBI Regulatory Package Notification. As stated above, however you can opt out of deferment and continue to pay the instalments as hither to.

12. Will I get a revised repayment schedule from the bank?

A revised repayment schedule will be forwarded to you for your record in due course.  You will need to give revised ACH mandate /adequate repayment instructions to your bank for the EMI payable over the extended loan tenure.

13. Is it ok if I continue paying the EMIs rather than availing of the moratorium?

Yes, you may please continue to pay your EMI if you do not want to opt for the moratorium and you have informed formally the Bank of the same. Else the EMIs so paid will be kept as an advance payment towards EMI dues from June 2020.

14. Can I opt moratorium for EMI due in April and then pay EMI due in May? 

No, since the Bank has offered the moratorium of 3 months for all loans you cannot avail specifically such partial deferment.   

15. Can I get refund of EMI paid in Mar 2020.

No refunds will be entertained for EMIS paid prior to March 27th - these EMIs will be treated as advance towards the EMI dues from June 2020 onwards.

16. I have taken a Tractor term loan with quarterly/ half yearly payable instalments. Would I also get the moratorium relief?

Yes. However, since your loan instalments are structured and/ or synchronized with that of your specific cropping cycle/ harvesting pattern/ cash flows etc., basis your specific formal request, the Bank may accept and give the benefit of deferment. Bank’s decision is final in this regard. For your queries on such loans, you may please call us at: Mr.Vikas Kumar – 098112-10820, on or before 15.04.2020 6.00 p.m.)

17. I have availed a housing loan from the Bank and have not drawn yet the sanctioned amount fully. Would I be eligible to get the moratorium relief?

Yes. Since on your loan, month on month you are servicing the interest, Bank would be offering a relief from pre-EMI interest payments for 3 months i.e. payable on 7th March 2020, 7th April 2020 and 7th May 2020 only. But you may note that, the said 3 months’ pre-EMI interest shall be due and payable by you on 7th June 2020 along with regular interest payable. However you can choose to pay/ authorize the Bank to recover the said interest dues, on 7th June 2020 by drawing against the “not yet drawn” loan sanctioned to you.

18. I have a housing loan taken from the Bank. Would I be eligible to get the moratorium relief?

Yes. RBI has permitted Banks’ to grant a moratorium of up to three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020 for loans outstanding as of 29th Feb 2020.

Hence the Bank will not raise the instalment demand during the moratorium period (for all eligible loans, as approved by Bank’s Board Policy). Accordingly the residual tenor of repayment schedule will be extended to recover the EMIs payable during the moratorium period along with interest on the same

A revised monthly repayment schedule will be forwarded to you for your noting of the revised repayment structure. Also you may need to give suitable extension/ modified repayment instructions to your bank for the extended EMI structure