All retail customers who have availed of “instalment” loan such as home loans, vehicle loans, loan against property, two wheeler loans, business loans on instalments,
personal loans, consumer durable loans, other such retail instalment loans prior to April 1, 2020 are eligible. Customers are advised that opting for the moratorium
will result in interest being charged on the outstanding loan amount during the period of moratorium as well as the extended tenor of their loan and hence customers
should avail it only if they are unable to service their loan.
Under this policy the Bank may allow a moratorium of up to three months on payment of instalments1.
Interest shall continue to accrue on the outstanding portion of such term loan during the moratorium period at the same rate as contracted for the respective
The Bank will present the post-dated cheques / ECS or NACH mandates, debit customer account, etc., provided by the customers for collection on the respective due
dates. In case the instalment is cleared by way of the instrument provided by the customer and presented by the Bank, then no refund will be issued. Moratorium if any
will only be provided for subsequent instalment(s) on request of the customer. For rural customers please refer point f) below.
Customers who wish to avail moratorium should send an email from their registered email address to the Bank at email@example.com, quoting the Loan account number,
five days prior to the due date.
Rural and agriculture customers will be automatically provided moratorium benefits upto three months without having to apply for the same. Moratorium benefits include:
Deferment for paying instalments for upto 3 months.
Not reporting to bureaus as defaulter during the moratorium period.
No penal and bounce charges for instalments pertaining to the moratorium period.
For retail customers who have no overdues for period prior to March 1, 2020, but whose repayment instrument are not cleared on presentation between March 1, 2020 and
May 31 2020, then such customers will be assumed to be impacted by COVID 19, and such customers will automatically be provided relief under moratorium, and hence
moratorium related benefits mentioned above in point f) above would be made available to them. In case customers choose not to avail the moratorium, they can pay dues
of the unpaid or returned instrument online to us.
Customers having overdues as on February 29, 2020 shall also be considered for Moratorium by the Bank for March, April and May 2020 EMI instalments. However, it may be noted that in case customers have overdues for period prior up to February 29, 2020 and do not pay the same, then the bank will have to report the customer’s overdue status to credit bureaus which will affect the customer negatively as the customer’s credit scores will get affected. Hence, the Bank will call customers and make normal collection efforts to regularise overdues upto February 29, 2020 as there is no moratorium applicable to overdues pertaining to period up to February 29, 2020 as per the regulations.
In respect of all customers classified as Standard as on February 29, 2020, even if overdue, and where the moratorium on payment of instalment and/or deferment of interest has been granted, the period from March 1, 2020 to May 31, 2020 will be excluded for counting the number of days past due, for the purpose of asset classification under the IRAC norms.
The repayment schedule for such retail instalment loans who have been provided moratorium benefits will be extended to recover the deferred instalments, along with
applicable interest. The interest accrued would be added to the principal which will extend the residual period of the loan as the EMIs would remain
No penal or bounce cheque charges would be levied for borrower granted moratorium / relief under the policy during the moratorium period.
Corporate, SME and MSME (including Business Banking & Kisan Credit Card) customers who have availed working capital facilities from the Bank are also eligible for
moratorium relief. Such customers can get in touch with their relationship managers and they may be provided relief under this policy based on review by the Bank, and
as per the terms applicable to them. Relief can also be provided for term loans availed by such customers.
The Bank may defer the recovery, upto three months, of interest applied in respect of Working Capital Facilities (Cash Credit/ Overdraft) during the period from March
1, 2020 up to May 31, 2020 (“deferment”). The above accrued interest shall be recovered immediately after the completion of this period.
In respect of working capital facilities sanctioned in the form of CC/ OD the Bank may recalculate the ‘drawing power’, by reducing the margins and/ or by reassessing
the working capital cycle. This relief shall be contingent on the Bank satisfying itself that the same is necessitated on account of the economic fallout from COVID-
Such concession in reduction of margin would be valid in respect of all changes effected up to May 31, 2020 for such period as the Bank assesses or such extended time
as per the impact assessment on working capital cycle. After such period, the margin would be reverted to pre-relief margin stipulated by the Bank.
For customers facing stress on account of the economic fallout of the pandemic, the Bank may re-assess the working capital cycle factoring the COVID19 impact on customer’s business. Such concession would be valid in respect of all changes effected up to May 31, 2020 for such period as the Bank assesses or such extended time as per the impact assessment on working capital cycle.
In case the working capital arrangement is under a Consortium, the reassessment of limits will need to be harmonized with the assessment of the Lead Bank of the
Consortium, including at a later stage.
1 Instalments will include the following payments falling due
from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) Equated Monthly instalments; (iv) credit card dues