Covid - 19, instalments relief FAQs
Covid - 19, instalments relief FAQs
Continuation of COVID 19 Relief Measure - FAQs Housing Loan, Loan Against Property, Auto Loan, Education Loan & Personal Loan
This scheme is intended for borrowers to mitigate the burden of debt servicing brought about by disruptions on account of Covid-19 pandemic and to ensure the continuity of viable businesses. There may be a temporary disruption in the Cash Flows, and in some cases loss of income, for the businesses/ individuals, the Scheme will bring relief to such borrowers. All those borrowers who have regular stream of cash flow should opt for continuation of the regular EMI.
RBI vide its guidelines dated 23.05.2020 has permitted Bank to extend moratorium by another three months i.e. from June 1, 2020 to August 31, 2020 on payment of instalments in respect of term loans. Hence Bank will not raise the instalment demand during this period and Borrowers availing this relief are not required to pay the Instalment during the period. Accordingly the repayment schedule for such loans as also the residual tenor will be shifted across the board.
No. Separate request for recovering EMIs for June to August will not be required and the EMIs will continue to be recovered.
The scheme will be applicable to all standard term loans under Housing Loan, Loan against Property, Auto Loan, Education Loan & Personal Loan as on March 1, 2020, for borrowers who have already availed moratorium during the period March 2020/ April 2020 to May 2020.
During the said moratorium period, Interest shall continue to accrue on the outstanding portion of the term loan. The Interest accrued during period of moratorium will be added to the outstanding loan amount at the end of the moratorium period and the repayment schedule for such loans will be reframed. Accordingly, the repayment schedule for such loans as also the residual tenor will be shifted across the board.
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. The repayment schedule for such loans will be reframed. This may result in either increased EMI or increased tenure of the loan or both.
Please find below an illustration for various loan amounts where customer has availed moratorium for all six months from 1st March 2020 to 31st August 2020.
| * Increase in total repayment amount after taking 6 months moratorium | ||
|---|---|---|
| Loan Amount | ROI | |
| 8.25% | 9.00% | |
| Rs. 20 Lakh | Rs 2,53,217/- | Rs 3,11,890/- |
| Rs 50 Lakh | Rs 6,32,734/- | Rs 7,80,749/- |
* Assuming original repayment tenure of 240 months where customer has already paid for 60 months and remaining repayment tenure is 180 months.
The instalments/other amount overdue on or before 29th February 2020 in any of the loan account will have to be paid in order to avoid down-gradation of account and slippage in credit rating in future.
Customer should request Bank to recover EMI by applying through IDBI Bank website at https://moratorium.idbibank.com/ or by responding to the SMS received from Bank for this purpose. After receipt of such requests from the customers, their EMI would be recovered by Bank.
The last date for opting out of the moratorium relief scheme has been extended till August 12 , 2020
The loan account disbursed after March 1, 2020 will not be covered under the Scheme.
Bank will not be levying any charges of late payment or additional interest during the moratorium period for the accounts granted with moratorium relief.
- Moratorium relief will not be applicable where the loan is currently under moratorium provided under the scheme without any obligation to pay interest.
- Education loan cases where borrower has opted for interest payment during moratorium the moratorium relief will be provided on the interest payment during the period.
- Education loan cases where EMI has already commenced the moratorium relief will be available on the instalments payable during 1st March 2020 to 31st May 2020 and between 1st June 2020 to 31st August 2020 unless customer Opts out (continue to pay).
In respect of working capital facilities sanctioned in the form of LAPOD and LAS accounts, Bank shall allow deferment of payment of interest accrued for period of moratorium i.e June 1 ,2020 to August 2020 . You can avail moratorium by submitting a request through an email communication to the nearest branch/ Retail Asset Centre of Bank .The interest amount so deferred will be recovered upfront after the moratorium period is over. Alternatively, the interest so accrued can be converted into another loan viz. Funded Interest Term Loan (FITL) which will be recovered in monthly instalments to be fully repaid by March 31, 2021. Such FITL shall also carry interest.
Yes. Customers who have paid EMIs during March 2020 to May 2020 and wish to avail moratorium relief for the balance period June 2020 to August 2020 can do so by submitting a request through an email communication to the nearest branch/ Retail Asset Centre of Bank. Such a request should contain all details such as loan account number, name of the borrower customer ID and months for which moratorium is required. Such a request will be made effective for instalments falling due prospectively. He shall be permitted moratorium for the period June 1, 2020 to August 31, 2020 only.