FAQ’S – Moratorium period (June 2020 to August 2020) – Loan Against Property

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

With the closing of previously announced three month’s moratorium period on 31-May-2020, RBI has now permitted Bank’s to extend the moratorium relief by another three months on payment of all instalments falling due between June 1, 2020 and August 31, 2020 for loans outstanding as on 01 March 2020. During the extended moratorium period, the borrower/customer can choose to defer paying the EMI. However, the Bank will continue to charge the interest on the loan outstanding.

2. If I choose to avail this moratorium, how will the loan be adjusted?

Moratorium of three months on payment of all instalments falling due between June 1, 2020 and August 31, 2020 will be offered on your Loan against Property. 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 EMI as 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.What is the process to be followed for getting the benefit of instalment moratorium?

Bank will debit the instalment for the months of June 2020, July 2020 and August 2020 on the due date every month via NACH/SI (as available with the bank). However, if the borrower/customer wishes to avail the moratorium, he/she can send an SMS with the keyword – IN to 5676757 from his/her registered mobile number on or before 31-May-2020. The Bank upon receipt of the SMS with-in the said deadline, will provide the full moratorium benefit to the customer and no instalments will be debited in the moratorium period. However, the interest will continue to accrue on the loan outstanding amount.

Bank has already sent the communication to this effect, to the borrowers/customers via SMS & E-mail in the last week of May 2020 on their registered coordinates with the bank, in multiple rounds.

4. If moratorium is already availed during March 2020 to May 2020, will it get automatically extended till August 31, 2020?

No. The borrower/customer would need to opt for moratorium afresh for the period from June 1, 2020 to August 31, 2020 as per the process explained in point #3.

5. Are loans booked during the period March 01, 2020 to May 31, 2020, also eligible for moratorium.

No

6. What do I need to do If I do not want to avail the moratorium benefit?

No action is required from borrower’s/customer’s end. The instalments will be debited by default every month on the due date via the instruction (NACH/SI) as available with the Bank.

7. What do I need to do If I opt for moratorium benefit but change the mind later on?

If a borrower/customer opts for moratorium, Bank will not debit the instalment on the due date. However, if such a borrower/customer changes the mind subsequently and wants to pay the instalment, he/she can make the payment digitally on the below link directly, on or after the EMI due date – https://cfddealer.indusind.com/collections/loanpay
Pl note this link is applicable for instalment payments of ‘Loan against Property’ only.

Amount paid on the link will be appropriated as instalment(s) in the loan account.

If digital payment is not possible, such a borrower/customer can approach the Bank and the possible assistance shall be provided on best effort basis. Requests can also be sent at reachus@indusind.com.

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

Late payment charges will not be levied for the moratorium facility for standard accounts.

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

During the said moratorium period, if you have opted for the moratorium facility, Interest shall 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, keeping the EMI as the same

10. Does this moratorium period affect my credit rating?

No, provided you don’t have dues pending before March 01, 2020.

11. What is the relief RBI has provided for Overdraft accounts under COVID 19- regulatory package?

RBI has permitted Bank’s to grant a deferment of three months on payment of interest in respect of all such facilities outstanding as on March 01, 2020. Hence Interest on such overdraft accounts will not be debited for this 3 months’ period till 31-August-2020 for standard accounts. The interest from 01-June-2020 to 31-August-2020 shall be debited to the Overdraft account on 01-September-2020.

12. I have availed a Loan Against Property from the Bank and have not drawn yet the sanctioned amount fully. Would I be eligible to get the moratorium relief?

Yes