Bank of Maharashtra to Offer 6 Months Moratorium on Term Loans in the Wake of COVID-19 Pandemic
Bank of Maharashtra has also offered a similar relief scheme for the borrowers whose cash flows have been impacted because of lockdown disruptions by COVID-19 pandemic. The rest of the customers who have regular cash flow have to continue with their regular EMI.
The bank offered a moratorium period of 6 months on loan/deferment of interest on credit cards for the period of 01.03.2020 to 31.08.2020. The products on which the moratorium is applied, include agricultural schemes and retail schemes, like home loan, vehicle loan, education loan, MSME, business and corporate. The bank has increased the total tenure of loans with applicable interest. The moratorium will not affect customers’ credit score.
Bank will continue the standing instruction facility unless withdrawn by the borrower. Borrowers are given liberty to make repayment as per the existing arrangement.
The bank can also grant additional finance through the way of Stand by Line of Credit. You can visit the nearest branch for further assistance.
In line with the continuation of COVID-19 and its impact, the bank has extended the moratorium period for 3 months (from 01.06.2020 to 31.08.2020).
Customers who wish to avail this relief have to follow the below process:
Type BOM <<space>> EMIDEF and send it to 57575 from your registered mobile number.
Bank will keep honouring the standing instruction unless the borrower withdraws. The borrower is free to make payments as per their existing arrangement.
All terms and conditions that were applicable for the previous 3 months moratorium will remain the same.
✅ What relief is provided by RBI for loan accounts under COVID 19 regulatory package?
RBI has allowed the bank to offer a moratorium of 6 months to all the loan accounts, which are standard assets as of 1st March 2020 and for which instalments are falling due between 01.03.2020 and 31.08.2020. Accordingly, the bank will not demand the instalment during this period and borrowers do not need to pay the instalment during the said period if they desire so. The remaining tenure of repayment will be extended by 6 months.
✅ Is rescheduling of term loans applicable only for the principal amount or does it also include interest?
Under the scheme, rescheduling of the principal amount can be done for a period of 6 months falling due between 01.03.2020 and 31.08.2020. For example, if the last instalment of your Term Loan falls due for payment of on 01.03.2020, it will now become payable on 01.09.2020. For EMI-based Term Loans, it will be 6 EMIs falling due between the said dates and the tenure will be extended by 6 months. For all other Term Loans, it will be all instalments as well as interest falling due during the same period, irrespective of the tenure of payment. For Term Loans, where the repayment has not started, the interest portion for 6 months alone needs to be reckoned.
✅ How do I get the benefit of instalment moratorium?
The scheme is uniformly applicable to all standard term loans outstanding as on 01.03.2020. You don’t have to raise any separate request. If you have already paid the March 2020 instalment, the relief will be applicable for the EMI payable in April, May, June, July and August 2020.
✅ Does this moratorium affect my credit rating?
✅ What if my loan repayment is to be commenced after 31.08.2020?
In such cases, the relief will not be available.
✅ What will happen after this moratorium period is completed?
The bank will continue to accrue interest on the outstanding portion of the term loans during the said moratorium period and it will be added in the total loan amount outstanding. This might result in a marginal change in your EMI. After completion of the moratorium, the repayment schedule of such loans and the remaining tenure will be increased by 6 months.