EMI moratorium, a burden?
Why you shouldn’t opt for an EMI moratorium if you don’t need one
#MoratoriumSamjho, A Customer Awareness Initiative Program by IDFC FIRST Bank
#MoratoriumSamjho, A Customer Awareness Initiative Program by IDFC FIRST Bank(Hindi)
To avail moratorium benefit for August, apply between 21st and 25th July, 2020
|Apply for Moratorium|
Moratorium is essentially a “pause” in contracted repayment obligations. In other words, it is deferment of loan instalments. RBI’s initial announcement covered up to three months’ instalments due between March 1, 2020 and May 31, 2020; RBI’s second announcement covered three months instalments due between June 1, 2020 and August 30, 2020. However, the interest will accrue and be payable by the customer. The accrued interest will be collected from the customer by extending the original tenor of the loan.
No, customers who wish to avail Moratorium 2.0 must apply for it. Those who were covered under Moratorium 1.0 also have to re-apply.
Repayment instrument provided by the customer will be sent for clearing as per the laid out process before the due dates. The customer will have to send in an email requesting for moratorium for the month, 5 days before the due date
Retail customers who wish to avail the moratorium should send their requests 5 days before the payment’s due date by:
Corporate, SME and MSME customers (including Business Banking and Kisan Credit Card), who have availed working capital facilities/term loans, are also eligible for moratorium relief. Such customers can get in touch with their relationship managers.
Rural and agriculture customers can avail the facility by contacting their relationship officer or visit the nearest IDFC FIRST Bank branch and submit a request.
Customers can benefit in the following ways by availing a moratorium:
It is advisable to note that opting for the moratorium will result in interest being charged on the outstanding loan amount during the period of moratorium. Also, the tenor of the loan will also increase. Hence, customers should avail the moratorium facility only if they are unable to pay their EMI.
No, as a customer, you do not need to inform us in case you do not want to avail a moratorium. Such customers are advised to maintain adequate balances so that the instalment dues are paid on time. We will continue to present the repayment instruments and this will reflect into the Loan Account.
Yes, interest will continue to accrue during the moratorium period at the same rate as per your loan contract. The interest accrued would be added to the principal which in turn will extend the tenure of the loan as the EMI amount will be unchanged. Hence, it is advisable that customers should avail moratorium only if they are unable to pay their EMI.
Yes, the tenor of your loan will increase if you avail moratorium. The repayment schedule for such instalment loans who have been provided moratorium benefits will be extended to recover the deferred instalments, along with applicable interest.
Yes, you can opt-out by paying the outstanding EMI. You may simply make the necessary payment here: https://reporting.capitalfirst.com/quickpay/qpinfo.aspx. Once the payment is made, you can send the request to opt out to firstname.lastname@example.org
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