Bank of Baroda Extends Moratorium on Term Loans EMIs & Credit Card Dues by 3 Months
After Reserve Bank of India’s recent circular regarding the extension of the moratorium, the Bank of Baroda has decided to extend the moratorium for another 3 months on payments of all instalments falling due between 01.06.2020 and 31.08.2020 for all term loans (such as Retail, Corporate, MSME, Agriculture, Personal, Housing, Auto Loans, etc).
The extended moratorium is also applicable for Credit Card dues, if your statement dated 01.03.2020 does not mention “IMMEDIATE” under the “Payment Due Date” column. If “IMMEDIATE” is mentioned, you will need to make the payment as mentioned on the statement or by calling the bank. Once the payment is made and your card account is regular, you can avail of the benefit of the remaining period of moratorium.
The following are some questions and their answers regarding Bank of Baroda’s moratorium extension supporting the RBI COVID-19 Regulatory Package.
Also Read: COVID 19 Personal Loan in India
✅ Which facilities are eligible for the Extended RBI COVID- 19 Regulatory Package?
The extended moratorium benefit is available to all Bank of Baroda customers having Term Loan outstanding and Working Capital Limit of up to Rs. 10 Lakhs as on 31.05.2020 across the board and customers with Term Loan outstanding and Working Capital Limit above Rs. 10 Lakhs. Interested customers need to give their option for availing the benefit of the extended moratorium at the Base branch.
✅ Does the rescheduling of payments cover all kinds of Terms Loans?
Yes. Rescheduling of payment is applicable for all Term Loans in all the Segments.
✅ What is the extended date of the moratorium granted by the bank?
The bank has extended moratorium from 01.06.2020 to 31.08.2020.
✅ Who can avail of this benefit?
Moratorium extension is granted to all the customers who have outstanding up to Rs. 10 Lakhs and above Rs. 10 Lakhs. To avail of the benefit, you will have to contact the base branch.
✅ How will the bank treat the interest on the Working Capital facilities?
Bank will convert the interest accrued on working capital (from 01.03.2020 to 31.05.2020 and 01.06.2020 to 31.08.2020) to Funded Interest Term Loan or FITL of all borrowers (Retail, Agriculture, MSME) having total outstanding as mentioned above.
✅ What other reliefs are given to the businesses?
The businesses can request the bank to reassess their Working Capital requirement on account of cash flow disruption or elongate their Working Capital Cycle. They can also request for margin reduction on NFB facilities (BGs/ LCs, etc.). The final decision will be taken on a case-to-case basis by the bank.
✅ Will the bank honour the existing ECS, NACH, SI mandates in the account during the moratorium period?
Bank will continue to honour instalments as per the ECS, NACH, SI mandates even in accounts where the moratorium facility has been granted unless it is stopped by the borrower. If the borrower wants to avail of the extended moratorium of 3 months by discontinuing ECS, NACH, SI payment, they can approach the base Branch.
✅ Is the bank sending an OTP to customers to avail moratorium?
No, Bank of Baroda is not sending any OTP for availing moratorium. Customers are requested to beware of any such fraud communication that asks for sharing OTP. Bank of Baroda officials will never ask its customers to share OTP, PIN, password, or account details.
✅ Can I opt for EMI deferment EMI in one month and then pay in another month?
Yes, you can do so.
✅ Are Credit Card dues covered under this Moratorium?
Yes, the following payments are included in the moratorium:
- Principal and/or interest components
- Bullet repayments
- Credit card dues
✅ Is this moratorium applicable to Bank of Baroda Credit Cards?
Yes, the extended 3-months moratorium is applicable to Bank of Baroda Credit Card dues of all customers wherein the Payment Due Date is not mentioned as ‘IMMEDIATE’ in the statement dated 01.03.2020.
✅ How do I know if I am eligible for the Bank of Baroda (BoB) Credit Card moratorium?
Payment Due Date column, then you are not eligible for the benefit of the moratorium. However, if the Payment Due Date is mentioned as 20.03.2020, then you are eligible. You are also eligible if no statement was generated for your BoB credit card on 01.03.2020, but you have an active BoB credit card (unused), and you decide to use it between 01.06.2020 and 31.08.2020.
✅ What does “IMMEDIATE” mentioned in Payment Due Date mean?
If the Payment Due Date mentions “IMMEDIATE” in the statement dated 01.03.2020, it means you had missed the payment (at least the Minimum Due Payment) by the Payment Due Date in one or more that one statement generated before 01.03.2020. As per the bank’s regulatory guidelines, the moratorium and extended moratorium can be granted for payments that are due between 01.03.2020 and 31.08.2020, and not for payments due before 01.03.2020, that were not paid by the customer.
✅ Can I avail the moratorium if my statement dated 01.03.2020 mentions “IMMEDIATE” under Payment Due Date?
This depends on how many payments you have missed in the past. It is suggested to follow the advice mentioned on the credit card statement or call the bank’s representatives to clarify the issue. Once you make the payment required and your statement dated 01.06.2020 or 01.07.2020 or 01.08.2020 does not mention “IMMEDIATE” under Payment Due Date, you can be eligible for the remaining moratorium period.
✅ If my credit card is under settlement having a fixed repayment schedule that falls during the said moratorium period and I fail to pay during this period, will the bank cancel my settlement?
Moratorium benefits are available only to those customers who have no overdue amount as on 01.03.2020. Cards that are under the settlement are ineligible for the moratorium benefits. So, the repayment schedule remains unaffected.
✅ What are my benefits if my credit card dues are eligible for the moratorium?
Your Bank of Baroda Credit Card statement mentions both – Minimum Payment Due and Total Payment Due. You will have to pay at least the Minimum Payment Due (including any EMIs running on your credit card) to ensure there are no Late Payment Charges levied and your card remains in the regular/ non-delinquent status. If you avail the moratorium extension, that would mean you are choosing not to make any payments towards the dues mentioned in statements dated 01.06.2020, 01.07.2020, and 01.08.2020. No Late Payment Charges will be levied and you will remain regular, i.e., you will not be classified as an overdue/ delinquent customer during the moratorium period.
✅ Will interest accrue during the said moratorium period?
As per RBI guidelines, the moratorium is provided to help you mitigate the financial burden of paying your credit card dues if there is any disruption in your earning or payment capacity due to the COVID-19 pandemic. However, if you are capable to pay the dues, you should continue doing so, as interest will continue to accrue on all your unpaid dues during this moratorium period. If you choose not to make payments or make less than the Total Payment Due, the interest will accrue on all unpaid dues as well as fresh transactions at the rate applicable to your credit card. The interest burden will become high when the moratorium ends on 31.08.2020, and you will be required to make the entire payment towards the dues mentioned in the statement dated 01.09.2020.
✅ How will the EMIs running on my BOB Credit Card be treated in terms of tenure and interest accrual?
EMIs on your card are part of the Minimum Payment Due. Hence, unlike standalone EMI loans, there will be no extended EMI tenure. If you don’t make payments towards at least the Minimum Payment Due in the moratorium, the EMIs too will be considered unpaid, and interest will be accrued at the rate applicable to your card. The EMI interest rate will not be applicable on the unpaid EMIs.
✅ All my BoB credit card dues are paid in full. My statement of 01.06.2020 does not mention any interest or finance charges. Will interest still be accrued during the moratorium period?
If your 01.06.2020 statement does not show any interest/finance charge and you continue to make the Total Payment Due mentioned in your statements of 01.06.2020, 01.07.2020, and 01.08.2020, no interest will accrue. However, if you avail the moratorium benefits and decide not to make any payment or amount less than the Total Amount Due, then the bank will accrue interest on the unpaid balance as well as any new transactions, till you pay the Total Payment Due.
✅ Explain more about the rate of interest and the accrual method.
To know more about the interest rate and method of accrual, you can visit the terms and conditions section on the link: https://www.bobfinancial.com/most-important-terms-and-conditions.jsp.
✅ If I have already paid the dues in the statement dated 01.06.2020 and I am eligible for the moratorium, how will the payments be treated?
Under the moratorium benefit, any Minimum Amount Due payment or more, within the Payment Due Date, would be considered as regular payments and no payment will be refunded. However, if you have paid less than the Minimum Payment Due or paid after the Payment Due Date, the bank will levy Late Payment Charges. If your payment was below the Minimum Payment Due amount, the bank will do adjustment credit/debit in your account for the shortfall, to prevent your account converting into overdue or delinquent account. These adjustment entries will be displayed in your statements dated 01.07. 2020, 01.08.2020, and 01.09.2020. These entries will not have any impact on the amount payable by you or the interest accrual on unpaid dues and fresh transactions.
✅ If I am eligible for the moratorium and I have opted for Auto Debit to my Bank of Baroda Savings Account, will my account continue to be debited during this moratorium period?
In case you have opted for Auto Debit, the bank will debit your BoB savings account for the payments due in the 01.06, 01.07, and 01.08 statements. If you do not want the bank to debit your BoB savings account during the extended moratorium period, respond to the SMS or E-mail received from the bank within the last date mentioned in the SMS or E-mail. If the Auto Debit transaction is unsuccessful due to insufficient funds in your account, the bank will not levy any Late Payment Charges and no adjustment credit and debit will be made towards the Minimum Payment Due amount. If you want to make payments to ensure no or less interest is accrued, you can use one of the digital modes of payment through the customised payment links sent via SMS by the bank. You can also use the Insta Pay option on www.bobcards.in/online-payment.htm.
✅ What happens after the moratorium period ends?
As per the new update, the moratorium period ends on 31.08.2020. For the statement dated 01.09.2020 onwards, the bank will apply the regular payment requirements, due dates, and charges. For example, if you do not make payment for at least the minimum due amount by the due date of payment, the bank will levy Late Payment Charges and your card account will become overdue or delinquent. Interest accrued during the said moratorium period is also a part of the payment due.
✅ Are there any changes in the payment due date during the moratorium?.
No, the payment due date remains the same, i.e., 20th of each month.