If you wish to avail the moratorium announced by the RBI for term loan EMIs and credit card dues for the next three months, from June 2020 to August 2020, then you need to take action quickly. Use this guide to find out how to apply for the moratorium at your bank. 

The Covid-19 pandemic has caused unprecedented economic troubles to people across all sections of society. From not receiving salaries due to the lockdown and even being let go at work, the financial difficulties faced by individuals are many. The RBI (Reserve Bank of India) has announced various measures to help borrowers tide over the pandemic's economic fallouts.

An initiative that has gained widespread appreciation from borrowers is the moratorium announced on outstanding term loans and credit card dues. Initially, the RBI announced the moratorium for 3 months, from March to June. Recently, the RBI has announced an extension of the moratorium by a further 3 months, till 31st August 2020. This makes it a total of six months moratorium on loans and credit card dues, from 1st March to 31st August 2020.  

Let's first understand what it is and its impacts before we take a look at how to apply for the moratorium at various banks.

What is the moratorium? 

The term moratorium refers to a repayment holiday. In other words, it refers to a period when a borrower gets time off from paying his/her loan repayments. Borrowers who opt for the moratorium needn't pay their EMIs and interest dues during the moratorium period.

The moratorium offered by RBI includes all types of loans, including personal, auto, home loans, etc. as well as credit card dues. The RBI has notified all banks, NBFCs, and HFCs to offer moratoriums to existing borrowers.

Financial Impacts of Availing the Moratorium 

The most significant benefit of availing a moratorium is that it helps borrowers overcome their financial hurdles brought on by the Covid-19 pandemic. If your income has been affected due to the lockdown, then the moratorium is a Godsend. It helps you to temporarily pause loan repayments, without impacting your credit score or repayment history.

However, note that the repayment holiday offers only temporary relief to the borrower. While borrowers don't have to pay EMIs or interest until the end of the moratorium period, the interest continues to accrue on the outstanding loan amount. In simpler terms, borrowers who avail the moratorium will have to pay extra interest to the bank, once they resume repayments.

The moratorium is only a reprieve and not a waiver on the outstanding loan. Make sure to check the terms and conditions offered by the borrower, and decide if it’s the right choice. 

If you decide to apply for the moratorium, the next section of this guide will help you. We show you how to apply for the moratorium at leading banks. 

1. How to apply for a moratorium at SBI?

As per the RBI Covid-19 relief package, SBI offers customers the option to further defer EMI payments for the next three months from June to August. SBI makes it super easy for customers to opt-in for the moratorium by sending an SMS.

Here are the key points to know, for customers who wish to avail this option:

  • If you do NOT want to defer your EMI payments, then no further action is required. The bank continues to debit EMI payments from your account as usual. 

  • SBI urges customers to understand the impacts of the moratorium before applying for it. If you opt for the moratorium, the outstanding amount will continue to accrue interest. It will also lead to an extension in the loan tenure.

If you wish to apply for the moratorium, here are the steps to follow:

  1. Via SMS 

  • Standing Instructions

Reply <YES> to VMN within 5 days of receiving the SMS from the bank, asking whether you want to opt-in for the moratorium.  

  • NACH

Reply <STOP 1234> to VMN within 5 days of receiving the SMS from the bank, asking whether you want to opt-in for the moratorium. Here, 1234 refers to the last 4 digits of your loan account number.  

  1. By visiting the bank 

Alternatively, customers can also download and fill up the Annexure-I available on the website and submit it to their nearest SBI branch, to opt for the moratorium. 

2. How to apply for a moratorium at ICICI Bank?

ICICI bank offers a moratorium on loans, credit cards, and other credit facilities to borrowers. If you opt for the moratorium now, your EMI instalments and credit card payments for June will be postponed.

Points to Know:

  • Currently, ICICI offers a moratorium only for June. The last date for applying for a moratorium for June is 24th June 2020. 

  • If you wish to apply for a moratorium for July and August, you have to re-apply on the website. The bank will provide further notifications regarding it.

  • The moratorium is only offered for EMIs. The loan continues to accrue interest on both the outstanding principal and interest during the moratorium, thereby increasing the tenure of the loan.

  • For working capital loans like ODs, ICICI bank offers the facility to postpone interest payments for June. However, the interest on the outstanding amount will continue to accrue during the moratorium period. The increase in interest must be paid on completion of the moratorium.

  • The borrower has to submit the moratorium request within 5 working days before the EMI payment. 

  • If you submit the request after that, the EMI payment may be debited from your account. In such cases, the refund for the EMI payment will be processed within the next 7 working days. 

If you wish to apply for the moratorium at ICICI Bank, here are the steps to follow:

  • Visit the website of ICICI bank and navigate to the moratorium section. 

  • ICICI offers an easy to use moratorium calculator that gives you a clear picture of the interests you will accrue when you choose the moratorium.

  • Click on “Opt for Moratorium,” after agreeing to the terms and conditions.  

  • Fill in the mobile number who have registered with the bank and click on “Next.” 

  • Enter your PAN number or date of birth as per bank records and click on “Next.” 

  • Select the loan you want to apply for the moratorium and click on "Next."

  • You will be prompted to enter the loan number, following which the moratorium will be applied to your loan account. 

4. How to apply for a moratorium at HDFC Bank?

Applying for the moratorium at HDFC is quite simple and requires just a few minutes. However, the bank urges customers to check the impact of opting for the moratorium before choosing this facility.

Points to Know:

  • Eligibility:

    • All customers who have taken term loans/credit cards before 1st March 2020 are eligible for the moratorium. 

    • The moratorium is also offered to Kisan Gold cardholders, microfinance borrowers, SME customers, and corporate customers.

  • Even if you have availed the moratorium for the last three month period (from March to May), you have to apply again to continue the moratorium for the next three months from June to August. 

  • If you opt for the moratorium, HDFC bank continues to charge interest on your outstanding loan balance. Additionally, the tenure of your loan will be extended post the moratorium period. 

  • If you have applied for a moratorium for June, but your account has already been debited, then HDFC bank will issue a refund within the next 5 working days of applying for the moratorium. 

HDFC Bank encourages customers to check the impact of the moratorium on term loans/credit card dues by visiting paymentadvisors.in. Enter the loan amount, tenure, pending EMIs, and interest rate to calculate the additional amount payable if you opt for the moratorium.

If you wish to apply for a moratorium, visit the website of HDFC Bank and start the process.

  • Choose the first option to defer EMIs between 1st June and 31st August. 

  • Enter the mobile number you have registered with the bank, loan account number registered PAN, and the captcha code, and click "Submit."

  • Your request is processed, and EMIs are deferred for the next three months.

4. How to apply for a moratorium at Axis Bank?

Axis Bank offers an opt-in facility for a moratorium on retail loans and credit card dues. This means a customer has to inform the bank if he/she wishes to avail the moratorium, due to any financial burden. Besides retail loans, Axis Bank also offers this facility on other loans like business loans, commercial vehicle loans, tractor loans, construction loans, etc.

Points to Know:

  • Customers have to specifically OPT-IN for the moratorium on term loans and credit card dues. The default option is regular payments. 

  • Moratorium on Kisan Credit Card, retail microfinance, farmer loans, and other agriculture loans are at the discretion of the bank.

  • Note that customers have to use the mobile number registered with the Axis Bank loan account while applying for the moratorium. Only requests from the registered mobile number will be accepted.

If you wish to apply for the moratorium at Axis Bank, here are the steps to follow:

  • Option 1: Via the Website 

    • Borrowers who wish to avail the moratorium must visit the website of Axis Bank, and click on “Opt Now,” under the moratorium section. 

    • Once you click on "Opt Now," you will be taken to a consent form. Enter the mobile number registered with the bank, captcha code, and then click "Submit."

    • You will be prompted to choose the loan/credit card for which you wish to avail moratorium. Enter the details and click submit to avail the moratorium. 

  • Option 2 – Via the Customer Care

    • Customers can contact the customer care team at the following numbers for availing the moratorium:

      • Retail Loans (Personal Loans, Home Loans, Car Loans, etc.) – 1860 500 5555/1860 419 5555

      • Agri Loans and Small Business Loans – 1800 419 5577

    • The customer care team is available from 9 AM to 6 PM on all days, except national holidays and Sundays. Regular call charges apply. 

  • Option 3 – Via Online Chat

    • Retail loan borrowers can apply for a moratorium by using the online chat facility available on the Axis Bank website.

    • The online chat facility is available from 9.30 AM to 6.30 PM, on all days. 

5. How to apply for a moratorium at PNB?

As the second-largest public sector bank in India, Punjab National Bank has extended the moratorium for term loans, credit card dues, and OD to 31st August 2020. 

Points to Know:

  • Customers can apply for a moratorium on term loans as well as working capital loans like cash credit, overdrafts, etc.

  • PNB offers a new toll-free number 1800 180 4400 for all Covid-19 relief related queries. The toll-free number is available from 10 AM to 7 PM on all days.

Customers who wish to apply for the moratorium can follow the method listed here:

  • Download the Annexure – I available on the PNB website. 

  • Fill the form with relevant details and submit it to your nearest PNB branch.

6. How to apply for a moratorium at IOB?

At Indian Overseas Bank, the moratorium is applied automatically to all customers. The EMIs of all existing borrowers of term loans, working capital loans like cash credit loans, ODs, agriculture loans, MSME credit, and credit cardholders are automatically deferred. 

This means you don't have to apply separately for availing the moratorium. However, if you don't want to avail of this facility, then you have to visit the home branch to submit your request.

7. How to apply for a moratorium at Kotak Mahindra Bank?

Kotak Mahindra Bank offers moratorium facilities for all existing customers who have availed term loans/credit cards before 31st March 2020. However, note that this facility is only available for individual customers and not for Housing Finance Companies, NBFCs, and Micro Finance Institutions who have borrowed from the bank.  

Points to Know:

  • Customers who wish to apply for a moratorium have to submit a request for it. 

  • Once approved, the borrower's existing tenure will be extended to accommodate the deferment and interest accrued.

  • Credit card customers who wish to apply for the moratorium should apply within seven days of their bill due date. 

If you wish to apply for the moratorium, here are the steps to follow:

  • Go to the application form available on the website of PNB. Make sure you have your mobile with you, as you will have to enter the OTP received on the registered mobile number. 

  • Enter the following details to proceed:

    • Registered mobile number

    • Date of birth OR CRN (Customer Relationship Number) 

  • Click on “Send OTP.” Enter the OTP received and proceed to the next step. 

  • Choose the loan for which you want to avail of the EMI moratorium facility and click on submit.

 

8. How to apply for a moratorium at IndusInd Bank? 

In these challenging times, IndusInd Bank offers a moratorium on term loans and credit card dues for all existing borrowers.  

Points to Know:

  • If a customer wishes to apply for the moratorium, he/she must place a request online. 

  • On the other hand, if the customer does not wish to avail of the moratorium, he/she can continue paying EMIs as usual.

  • If you avail the moratorium, note that interest will be accrued during the moratorium period. The interest accrued during the moratorium period will be added to the outstanding loan amount. The loan's tenure will be revised while keeping the EMI as the same as before.

If you wish to apply for the moratorium, here are the steps to follow:

  • Option 1 – Via SMS

    • If a customer wishes to avail of the moratorium, he/she can send an SMS from the registered mobile number, IN to 5676757. The bank on receipt of the SMS will send a link to register for the moratorium.

  • Option 2 – Via Website 

    • Customers can also place their request for the moratorium by visiting the site, moratoriumoptin.indusind.com. 

    • Enter the loan account, captcha code, and OTP received on the registered mobile number and click on "Submit."  

    • Follow the instructions and complete the process.

9.  How to apply for a moratorium at Canara Bank?

Canara Bank offers a moratorium facility to all customers who have availed term loans in retail, agriculture, MSME, and working capital loans like overdraft and cash credit. The relief is offered for credit card dues, as well.

Points to Know:

  • If customers do not want to avail of this facility, they do not have to do anything. Alternatively, customers can also reply NO to the SMS from the bank asking whether he/she wishes to avail the moratorium. Send NO from your registered mobile number to 84220 04008.

If you wish to apply for the moratorium, here are the steps to follow:

  • Option 1 – Via SMS

    • Canara Bank has sent SMS notifications to all existing borrowers. If you wish to avail the moratorium, reply YES to 84220 04008 and follow the instructions specified. 

  • Option 2 – Via Email

    • If you have not received the SMS or missed it, you can send an email to retailbankingwing@canarabank.com with details of your loan account number, bank account number, customer name stating your request to apply for the moratorium. 

10. How to apply for a moratorium at South Indian Bank?

At South Indian Bank, the moratorium is offered automatically to all existing borrowers. All term loans like retail loans, agriculture loans, crop loans, etc. and working capital facilities like OD/CC are offered moratorium automatically from 1st March 2020 to 31st August 2020. To reduce the paperwork, South Indian Bank does not require customers to provide a special request for availing the moratorium facility. It is automatically provided for all borrowers. 

If a customer avails the moratorium, the original repayment tenure of the loan will be extended. 

However, if you do not want to avail, you must provide a request for the same at your home branch before 15th June 2020. Once your application is processed, your EMIs will continue as usual, and there will be no further option to avail of the moratorium.  

Additional Reading: Is Moratorium a Relief? Who Should Avail a Moratorium?

Moratorium FAQs

1. Is the moratorium a waiver of EMIs? 

No. The moratorium offered as Covid-19 relief is only a postponement of EMIs. It is NOT a waiver. You have to repay the deferred EMIs along with interest accrued after the moratorium period, i.e., after 31st August 2020.  

2. Does the moratorium cover both the principal and interest? 

Yes. The moratorium is offered for both the principal and interest of term loans. 

3. How can I opt for the moratorium for my term loans/credit card dues? 

You can follow the steps listed in this article, as per your lender. Alternatively, most lenders send SMS/Email to customers informing them of the moratorium. You can also follow the instructions in the SMS/Email to opt for the moratorium. 

4. What should I do if I don’t want to opt-in for the moratorium? 

If you do not want the EMI moratorium, no further action is required on your part. The lender continues to debit your EMI as per your current schedule. 

5. Do I need to issue a fresh auto-debit/ECS mandate, if I opt for the moratorium? 

No. The EMI remains the same. However, the tenure of your ongoing loan will be extended. So, you don't have to issue a fresh auto-debit/ECS mandate. However, if your lender increases the EMI, you will be required to issue a new auto-debit/NACH mandate.

6. I have opted for the moratorium. If I make an EMI payment during this period, then will it be considered as prepayment? 

No. If you pay the due EMI during the moratorium period, it will not be considered prepayment, and no prepayment charges will be levied.

7. Can I pay all the missed EMIs as a bulk payment at the end of the moratorium period? 

It depends on the lender's terms and conditions for the moratorium. Some lenders may extend the tenure and ask you to continue with the revised payment schedule. On the other hand, certain lenders may allow you to pay the missed EMIs as a bulk payment after the moratorium.

8.I have sufficient balance in my account. Will my bank account be debited? 

No. If you have opted for the moratorium, the amount will not be debited from your account. 

9. Should I submit any additional documents to opt-in for the moratorium?

No. Borrowers need not submit any extra documentation for the moratorium. 

10. I have several loans from a lender. Does the moratorium apply for all? 

No. You need to specifically apply for the moratorium for each lender. 

11. I am an NRI customer. Am I eligible for a moratorium?

No. The moratorium is only for Indian citizens. NRIs who are having difficulties paying loan EMIs can reach out to the lender for support. 

12. Is the moratorium also for credit card bills? 

Yes. To avail the moratorium on credit cards, you need to voluntarily defer paying the outstanding amount. Also, don't forget to turn off auto-pay, if you have availed this facility.

EndNote

Choose the Moratorium with Caution

Opting for the moratorium doesn’t make sense for all borrowers. Only borrowers whose earnings are severely impacted by the lockdown and have very little savings to meet their family’s expenses, should opt for the moratorium. 

We encourage customers with sufficient funds to continue paying their EMIs on time to avoid incurring extra interests and extending the tenure of an ongoing loan.