FAQ’s - Flexible Loan Instalment Product
1. What is the relief RBI has provided for retail term loans under COVID 19- regulatory package?
RBI has permitted Bank’s to grant a moratorium of up to six months on payment of all instalments falling due between March 1, 2020 and August 31, 2020 for loans outstanding as on 01 March 2020. During the moratorium period, the borrower can choose to defer paying the EMI. However, the Bank will continue to charge the interest on the loan outstanding.
2. If the moratorium is availed, how will the loan be adjusted?
During the moratorium period, the daily instalment due to your loan will not be recovered. If daily instalments for the month of March 2020 are already paid, moratorium will be applicable on payment of instalments falling due between April 1, 2020 and August 31, 2020. The Interest accrued during the moratorium period will be added to the outstanding loan amount and the loan will be extended for a revised tenor, keeping the daily instalment the same. Please note, moratorium is only a deferment of the instalment to be repaid and not a concession or waiver of the EMI due.
3. If moratorium is availed, will the daily instalment be increased?
No, availing of the moratorium will not increase the daily instalment amount.
4. In case moratorium is not availed, how can I pay the overdue amount?
Overdue can be paid by either of one ways:
Deposit the overdue amount in the linked current account through any of the modes to settle the overdue
For more information you may reach out your respective RM.
5. Can I avail Moratorium for partial period?
Moratorium can be availed for entire period i.e. 1st Mar 2020 to 31st Aug 2020. You can pay the overdue instalment through the Digital link provided against point 4.2 above. For more information you may reach out to the LACR team in your city.
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.
7. In case Moratorium is availed, how would the loan be treated once moratorium is over?
During the moratorium period, the interest will continue to accrue on the outstanding portion of the term loan. The interest accrued during the moratorium period will be added to the outstanding loan amount and the loan will be extended for a revised tenor. However, the Daily Instalment will continue to be the same once the moratorium period is over.
8. Does this moratorium period affect my credit rating?
No
9. How to avail Moratorium?
Moratorium has been offered to all FLIP customers. If you wish to continue to pay during the moratorium period, you can get in touch with the LACR team in your city. You may also keep a track of the future communication sent by the bank in this regard.