IDBI Bank Offers Instalment Relief to Reduce the Impact of COVID - 19 on Its Customers

Private lender IDBI Bank has offered a relief to its borrowers to reduce the burden of servicing debt in the wake of disruptions caused by coronavirus pandemic. The bank provided a moratorium on 6 instalments of term loans for 6 months till 31.08.2020. It will cover all standard term loans under housing loan, education loan, personal loan, loan against property, and auto loan as on 01.03.2020.

The bank will also offer a deferment of interest on working capital loans impacted due to COVID 19 for 6 months. Whose cash flows are not affected and wish to continue payments, can pay as per the existing schedule.

It ensures the relief and continuity of viable businesses as there can be a temporary hurdle in the cash flows, and loss of income in some cases for the businesses & individuals.

Interest will continue to accrue on the outstanding loan amount during the said moratorium period and it will be added to the outstanding loan amount when the moratorium period ends. The repayment schedule of such loans will be reframed accordingly.

If you do not want to avail the extension, you will have to do the following things as per the bank.

• You can opt out from EMI moratorium by sending email to moratorium@idbi.co.in
• The email should include the following details:
  • Email’s Subject should be your Loan Account number
  • Mention the name of the borrower and loan account number in the mail body

Mention in the email that ‘I wish to opt out from the instalment moratorium facility offered by the bank, hence kindly deposit my EMI by way of ECS/SI’.”

The bank has extended moratorium for term loans from 01.06.2020 to 31.08.2020 following the recent circular issued by RBI.

For more information regarding the same click here: IDBI Moratorium 2.0 on Term Loans: June to August 2020

FAQs

✅ Who can avail this relief?

The scheme is applicable to all standard term loans under Loan against Property, Housing Loan, Personal Loan, Auto Loan, and Education Loan as on 01.03.2020. If the instalment for the March 2020 has already been paid by the borrower, the relief will be applicable for the EMI payable in the month of April May, June, July, Aug 2020.

✅ Since the borrower won’t be paying instalments, how will the loan be adjusted?

During the said moratorium period of 6 months, interest will continue to accrue on the outstanding portion of your term loan and the total interest accrued during that period will be added to your outstanding loan amount when the moratorium period ends. The bank will also reframe your loan’s repayment schedule and the residual tenure will be shifted by 6 months.

✅ What will happen after the completion of the relief period /moratorium?

The addition of accrued interest on the outstanding loan amount will result in a marginal enhancement in balance and reframed EMIs. The repayment schedule will be reframed and the remaining tenure will be shifted by 6 months.

✅ Does this moratorium period impact my credit rating?

No, provided your loan repayment is satisfactory up to 29.02.2020.

✅ What if my cash flow is not affected due to COVID-19 and I do not want to avail moratorium?

You may opt out from EMI moratorium by sending an email to moratorium@idbi.co.in by not later than April 15, 2020. The E-mail should include your Loan Account number and name. Mention in the email that you want to opt out from the instalment moratorium facility offered by the bank, and continue with the existing repayment schedule through ECS/SI.

✅ What is the last date for opting out of the scheme?

You can opt out of the moratorium relief scheme latest by April 15, 2020.

✅ Can I pay during the moratorium period?

Yes, you can. For making such payments, you can contact the nearest Branch/Retail Asset Center of the bank.

✅ Is the scheme applicable on term loans availed after 01.03.2020?

No