FAQ’s - LACR

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 three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020 (later extended till  August 31,2020) for loans outstanding as on March 01, 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, what will be the treatment of different facilities (OD / DLOD) under LACR?

LACR Overdraft (OD) - the interest will get deferred during the moratorium period and the accumulated interest will get applied on September 01, 2020.
LACR Drop Line Overdraft (DLOD) - the deferment will be applicable for both interest as well as limit drop of each month during the moratorium period. While the interest accumulated during the moratorium period will be applied to the account on September 01, 2020, the limit drop at the agreed monthly rate will continue post the moratorium period leading to extension of the facility tenure.
It may be noted that interest will continue to accrue on the deferred interest during the Moratorium period under OD as well as DLOD facilities under LACR.

3. Can I avail Moratorium for partial period?

Moratorium can be availed for entire period i.e. 1st Mar 2020 to 31st Aug 2020. For more information you may reach out to the LACR team in your city.

4. I have a Drop Line Overdraft facility. Can the Moratorium be availed for interest serving only?

Yes, you may do so. In such cases, interest for the month need will be applied on the respective due dates during the moratorium period and will have to be serviced per the terms of sanction and the moratorium for principal will be offered leading to extension in tenure of the facility.

5. In case Moratorium is availed, when will the interest be applied in my account?

The accumulated interest during the moratorium period will be applied on 01st Sep, 2020.

6. In case Moratorium is availed, will the tenure of the facility get extended?

In case of Drop Line Overdraft (DL OD), the facility tenure will get extended by the moratorium period.

7. Does this moratorium period affect my credit rating?

No

8. How to avail Moratorium?

You may opt for the moratorium by instructing the Bank as per the directions provided in the SMS or Email received from the Bank on your registered Mobile/Email ID.

For more information you may reach out to the LACR team in your city.