SBI loan EMI moratorium: All you need to know

Here is a look at the details of the country's largest lender, State Bank of India's (SBI) moratorium on loan EMIs. These are details as published on the bank's website.

BCCL
The Reserve Bank of India (RBI) has asked all lending institutions including banks and housing finance companies (HFC), will have to give their borrowers a three-month moratorium on term loans. The moratorium was for payment of all instalments falling due between March 1, 2020 and May 31, 2020.

According to the RBI, deferred instalments under the moratorium 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 (EMIs); (iv) credit card dues.

"The call has to be taken by the borrower. If you have enough cash flow it is advised not to avail of this moratorium. Opt for it only if you are facing a cash flow problem. If you have given a standing instruction (SI) to SBI to debit the EMI every month, it will continue to happen till you intimate the bank. If you want to opt for the 3-month moratorium on your EMIs, then you will have to mail the bank instructing the same. If you funds in your savings account and have an SI with the bank then money will continue to get debited towards EMI payments," explained C. S. Setty, State Bank of India's MD - Retail & Digital Banking.


Here are the details of the State Bank of India's EMI moratorium facility as per its website. ( Click here for the forms)

  • SBI has initiated steps to defer the installments and interest/EMIs on Term Loans falling due between 01.03.2020 to 31.05.2020 .
  • Accordingly, the total repayment period will be extended by 3 months over the original repayment period.

Customers are given these options:
Customers who do not want to defer recovery of instalments /EMI: No action is required . They may continue to pay in usual course.

Customers who want to defer recovery of installments/EMI:

NACH: Where collections of such installment / EMI is effected through National Automated Clearing House (NACH), please submit an Application (Annex-I) along with mandate for NACH Extension-(Annexure-II) to stop NACH for these installments through an e-mail to the specified email ID(Annexure-III).

Standing Instructions (SI): Please submit an Application (Annexure-I)through an email to the specified email ID.(Annexure-III).

Impact of Deferment

ADVERTISEMENT
To enable you to take an informed decision, we furnish here under the impact of deferment:

Interest shall continue to accrue on the outstanding portion of the Term Loan during the moratorium period. The possible impact of the extension of the repayment period has been explained below :

ADVERTISEMENT
Impact in case of Auto Loan: For a loan of Rs.6 lakh with a remaining maturity of 54 months the additional interest payable would be Rs.19,000 approx. equal to additional 1.5 EMIs.

Impact in case of Home Loan: For a loan of Rs.30 lakh with a remaining maturity of 15 years , the net additional interest would be approx.. 2.34 lakh equal to 8 EMIs
Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

Related Companies

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+