HOW TO APPLY FOR MORATORIUM IN BANKS DUE TO PANDEMIC COVID-19 /CORONA VIRUS

LOAN EMI MORATORIUM

To Whom Moratorium is helpful

Basically moratorium is helpful for everyone who are paying the EMI of any type of  loan (car loans,  home loan, Gold loan, personal loan, SB loan, NRE account, Education loan etc.). It helpful for those people who are unable to pay the loan EMI from the period of 01 March 2020 to 31 May 2020 due to lockdown of COVID19. In this regulatory package, the total repayment period will be extended by 3 months over the original repayment period.

Options for customer

Below given details can be differ for private banks but it is applicable in all Nationalised banks in India.

1. Customer who do not want to defer recovery of installments/EMI

    No action is required. They may continue to pay in usual course.

2. Customer who wants to defer recovery of installments/EMI

They have to submit the application (Annexure-I) through an Email ID to the specified Email ID (Annexure-II). This application is actually submitted to NACH - National Automated clearing House where collection of such installments are processed. Moreover, if you are unable to send through e-mail , handwritten application can also be submitted in the same format to the respective branch of bank.

* Annexure-I and Annexure-II are available in the all the Nationalised bank websites.

3. Customer who wants refund of the installment / EMI already paid.

                    As we know that Lockdown came in effect on 24.03.20, most of the customer have been already submitted there EMI for the month of March. Therefore, if those customer who want there EMI amount back they also need to submit an Application in Annexure-I format through the Email or handwritten in the same format to the specified Email Id given in Annexure-II.

The main drawbacks of this Moratorium

                   The bank will not going to charge you the penalty for not paying the installments but they will charge you the interest. Let us have an example to understand the impact of not paying the installments.

Example of Auto Loan:- Suppose you have a auto loan of amount of 6 lakh with a remaining maturity of 54 months. Then the additional interest payable would be Rs.20000 approx. which will be equal to 1 or 2 EMI more that means now your EMI tenure is 56 months.

Example of Home Loan:-  In this case, suppose you have Rs.30 lacs  approx. home loan amount with remaining maturity of 15 years , then the net additional interest amount would be around 2.5 lakhs which will equal to 9 EMI more. That means that revised total EMI duration will be 15years and 9 months.

It is upto you whether you wanted to avail these benefit or not. But it will more helpful if interest amount will be waived for this period. It completely justify the phrase "There is no free lunch". And in this difficult situation of COVID-19 everyone has to pay the price in one or  another way. But the taste of this dificult situtation is much worse for the Middle society of this country. Government need to come up with some more lenient measures so that the backbone of this country i.e Middle  class will get some strength to fight with this undesirable situation