HDFC Bank extends loan EMI moratorium till August: Here’s how to avail

Image Source : FILE (ANI) HDFC Bank extends loan EMI moratorium till August: Here’s how to avail

HDFC Bank announced that it has extended the loan moratorium and credit card outstanding moratorium by another 3-months for its customers to help them sail through the disruption caused by coronavirus pandemic. The Reserve Bank of India last week had extended the moratorium on loan repayments by three more months, till August 31.

In line with the RBI guidelines and to show our solidarity in standing with you, HDFC Bank is offering it’s customers EMI moratorium and credit card outstanding moratorium as a relief measure, the bank said.

These are unprecedented times and it is a time that we need to be together to fight this COVID-19 crisis, HDFC Bank said. 

“We understand in this current situation there may be disruptions in business leading to low cashflows or the earnings of individuals and self-employed professionals may have been impacted. Our aim through implementing this relief package is to ensure that you can continue to take care of your family, your business and your own self and tide over this temporary situation,” bank said.

We advise you to stay safe and healthy and continue to bank from your home through our digital banking services, it said.

Banks are offering EMI moratorium to retail customers on a blanket ‘opt-out’ basis. Customers should note that the moratorium is a deferment of payment and not a waiver of interest. You are required to pay the minimum amount due or total outstanding along with accrued interest charges on the due date after 31st Aug 2020.

Here are the details of the EMI moratorium package and also guidance on how you can avail the EMI moratorium, sourced from the HDFC Bank website.

Note: The EMI payments in the month of June 2020 will be processed on the due dates as per standard process. For customers who will apply for EMI Moratorium in June 2020, and their June EMI has already been deducted, they will get an EMI refund in 5 working days from the date of their successful EMI moratorium application. On your Credit Card, if you wish to avail the moratorium from June 2020, you may defer your outstanding payment (i.e. make NIL payment) or disable the Autopay from NetBanking.

1. What is the new EMI moratorium provided for loans under COVID 19 – regulatory package recently announced by RBI?

The prevailing situation may pose a huge challenge for people at large. As a measure of solidarity, to borrowers who have been economically impacted by COVID-19, RBI has permitted all Indian Banks / Indian financial institutions to offer another moratorium (temporary pause) on their EMI payments for a period of 3 months for EMI’s falling due between Jun 1st, 2020 to Aug 31st, 2020.

2. Who is eligible?

All HDFC Bank customers who have availed of retail instalment loan or any other retail credit facilities prior to 1st Mar 2020 are eligible. The decision to offer a moratorium to a customer will be at the sole discretion of the Bank.

Customers having overdues prior to 1st Jun 2020 may also opt for the moratorium, and their requests shall be considered by the Bank based on its merits.

All Agri Loans (Kisan Gold Card) and Microfinance customers under the Bank’s Sustainable Livelihood Initiative are also eligible.

All Corporate as well as SME customers are also eligible. Our Relationship Managers will get in touch with you or you can contact them to get further details.

3. What will happen if I had already chosen moratorium for the period of Mar-May 2020? Will my moratorium of Mar-May continue for the period of Jun-Aug 2020?

No. Your moratorium availed earlier will not continue. You will have to make a fresh application on the link provided to register for the moratorium facility for the period of Jun-Aug 2020.

In case you are interested in availing the moratorium, we encourage you to avail of the Moratorium for the month of Jun 2020 only at this point in time as a prudent financial measure. You can come back and apply again for Jul and Aug later if you so desire.

The decision to offer a moratorium to a customer will be at the sole discretion of the Bank.

4. What will happen if I choose the EMI Moratorium?

If you choose the EMI Moratorium, it would be applicable post the Bank accepting the application for the moratorium.

Please note that if you have the ability to pay your EMI, then you should consider paying your EMI for the period of Jun-Aug as per regular schedule. Availing the moratorium will incur an additional interest charge on your loan outstanding which you have to repay in the form of additional EMIs once the moratorium period is over.

If you choose EMI moratorium,

Bank will not ask for any EMI Payment for the period of moratorium availed by you i.e. till Jun 30th 2020 if you avail it for one month or till Aug 31st 2020 if you avail it for 3 months.

Interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan.

The loan tenure will get extended post application of moratorium.

5. If I do not want the EMI moratorium, what should I do?

If you do not want the EMI moratorium, no further action is required from your side. We will continue to bank your repayment instructions.

We encourage customers with adequate funds to continue paying during this period to avoid the extra interest charges and tenor extension.

6. Why was my account debited when the RBI has announced a moratorium?

Opting for the Moratorium is entirely the customers’ choice. We understand that all our customers may not opt for the Moratorium given that there is an additional levy of interest payable under the terms of the Moratorium. If you wish to opt for the Moratorium, we would be happy to refund the EMI debited and register your Loan account under the Moratorium process.

Note: Customers who have applied for EMI Moratorium in June 2020 and their EMI has already been deducted, will get an EMI refund within 5 working days. If you apply in Jul 2020 and you have paid the EMI for Jun 2020 already, the EMI for Jun 2020 will not be refunded.

7. What charges will I pay, if I avail of this EMI moratorium?

If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.

Illustration Auto Loan: Loan amount Rs. 8 Lacs, remaining tenor 36M, Last EMI on 7-May-23, opting for 3 months Moratorium i.e. Jun-20, Jul-20 & Aug-20 EMI. The additional interest at the contracted rate would be about Rs. 25,500 and the same would be added to the principal outstanding as on 31 Aug 2020. The resultant tenor would increase by four months, and the last EMI including the interest recovery would be on 7-Sep-23.

Illustration Salaried Personal Loan: Loan amount Rs. 4 Lacs, remaining tenor 48M, Last EMI on 4-Jun-24, opting for 2 months Moratorium i.e. Jul-20, Aug 20 EMIs. The additional interest at the contracted rate would be about Rs. 15,000/-, and the same would be added to the principal outstanding as on 31 Aug 2020. The resultant tenor would increase by 1.4 EMI, and the last instalment (40% of regular EMI) would be on 4-Oct-24.

8. How do I get this EMI moratorium?

You will have to provide your consent to the bank through the following way.

The link will provided here shortly.

Note: Keep your loan account number handy before you start the process.

The decision to offer a moratorium to a customer will be at the sole discretion of the Bank.

In case you are interested in availing the moratorium, we encourage you to avail of the Moratorium for the month of Jun 2020 only at this point in time as a prudent financial measure. You can come back and apply again for Jul and Aug later if you so desire.

9. I am an NRI customer. How can I apply for the EMI Moratorium?

Kindly note that the moratorium is applicable for credit facilities availed in India and it can be availed for EMIs due for the months of Jun, Jul & Aug 2020 only.

In case you are an NRI customer and availed the loan in India, then
You can send an email to ‘[email protected]“. Email should be sent only from the Email ID of the Borrower which is registered in Loan Account with the Bank.

Format of the Email / Letter is provided below:

Subject: Application for EMI Moratorium.

Loan Number:

I wish to defer my unpaid EMIs falling due between Jun 1, 2020 and Aug 31, 2020 on the above referred Loan Number and I understand that interest shall continue to be charged on the outstanding portion of the term loans during the moratorium period.

Signed by Borrower/s.

In case, you are present in India currently, you can also submit the above Letter at any nearest HDFC Bank Branch.

10. How do I apply, in case I am not able to complete the application in the link provided due to a mismatch in my records?

In case, there is mismatch due to any reason and you are not able to complete the application on the form provided in the link, you can follow the same process as listed in Q.9 above and write an e-mail or submit a letter at your nearest branch in the suggested format.

11. I have more than one loan from HDFC Bank (Example: Personal Loan & Car Loan). Can I get EMI moratorium for both the loans?

Yes, you can opt for EMI moratorium for each loan that you have availed from us. Please remember that additional interest for the EMI moratorium period will be applicable for each loan separately.

12. What if I have already paid my EMIs for May 2020 and would like to avail the moratorium till 31st Aug 2020?

You can avail of the moratorium benefits for the months of Jun to Aug 2020. Please follow the process given above for availing the moratorium.

13. Does this moratorium apply for Credit Card outstanding and Loans on Credit Cards?

Yes, the moratorium is available on Credit Card outstanding and Loans availed on Credit Cards for payments due from 01 Jun 2020 till 31 Aug 2020.

The moratorium allows you to defer the payment till 31 Aug 2020. You are required to pay the minimum amount due or total outstanding and accrued interest charges on the due date after 31st Aug 2020.

We encourage you to continue your payments during the moratorium period in case you wish to avoid extension of the tenors of any loans in your card or to avoid the interest on dues billed in this period.

14. Are all credit card customers eligible for this moratorium?

Yes.

All retail credit card customers will be deemed eligible for the moratorium if they are regular with their payments on or before 01st Jun 2020 on their credit card and loans taken on the credit card

In case you are interested in availing the moratorium, we encourage you to avail of the Moratorium for the month of Jun 2020 only at this point in time as a prudent financial measure. You can avail the moratorium for Jul and Aug if you desire, by deferring the payments or disabling the Autopay from NetBanking.

15. How do I avail the credit card moratorium?

To avail the credit card moratorium,

(a) voluntarily defer paying the outstanding during this period i.e. make NIL payment

(b) turn off Auto Pay (in case the same is currently availed) through net banking / mobile banking to avail the benefit of the moratorium and reactivate the same post the end of moratorium period

16. Will interest be levied for the moratorium period on my credit card outstanding and loan on credit cards?

Yes, interest will be levied as per the contracted rate on the card. Opting for 3 months moratorium allows you to defer the payment of your credit card dues and loan instalments taken on credit card till 31st Aug 2020. We encourage customers to make full payments towards the outstanding wherever possible to avoid/minimise levy of interest charges for this period.

Kindly note that the moratorium is a deferment of payment and not a waiver of interest. You are required to pay the minimum amount due or total outstanding along with accrued interest charges on the due date after 31st Aug 2020.

Note: The moratorium is applicable for credit facilities availed in India.

 

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