IndusInd Bank Extended Moratorium on Loans by 3 Months

Earlier IndusInd Bank, under the RBI COVID19 package, offered its valued customers the moratorium of up to 3 months on Loan EMIs and Credit Card dues payment, i.e., the choice to defer Loan EMIs and Credit Card dues falling between 01.03.2020 and 31.05.2020.

As announced in the statement by RBI Governor on 22.05.2020, the intensification of disruptions caused by COVID-19, there is a need to relax repayment pressures and improve access to working capital by reducing the burden of debt servicing and ensure the continuity of viable business. Thus, banks have been allowed to extend moratorium by another 3 months, i.e., from 01.06.2020 to 31.08.2020.

Also Read: IDFC FIRST Bank Offers 3 Months Moratorium Extension on Loans

Below is the detailed information regarding the relief under RBI COVID19 package in question-answer format:

FAQs

✅ What relief has been offered by the RBI?

Under this relief, RBI has allowed banks to provide various reliefs to their customers, including:

• Extension of moratorium by another 3 months, i.e., from 01.06.2020 to 31.08.2020 on payment of term loans instalments (including retail loans, agricultural term loans, and crop loans). The repayment schedule of such loans and the residual tenure, will be shifted across the board and interest will continue to accrue on the outstanding part of the term loans during this moratorium period.
• For working capital facilities offered in the form of cash credit/ overdraft (CC/OD), the banks are allowed a deferment of another 3 months, i.e., from 01.06.2020 to 31.08.2020, on the recovery of interest levied on all such facilities. The bank, at their discretion, can also convert the accumulated interest for the said deferment period up to 31.08.2020, into a funded interest term loan (FITL), which will be repayable not later than 31.03.2021.
• If you opt for non-payment of EMIs and card dues, you will not qualify as a defaulter and such non-payment will not be reported to Credit Information Companies.

✅ Is IndusInd Bank providing the said relief to borrowers?

• Term loans ((Personal Loans/ Business Loans/ Loan Against Property/ Health Care) and similar fixed term facilities including DLODs
• Working capital facilities
• Credit Cards

✅ Who is not eligible for the relief?

The following facilities are not eligible for the relief:

• LC devolvement/ guarantee invocation
• Swap/ derivative payables
• NPA Accounts
• Balance transfers from other banks/ lending institutions during the period
• Other facilities or reliefs, not approved for a grant of moratorium by the regulator

The following borrowers are also not eligible:

• Who are undergoing a recovery action by the relevant judicial body
• Who are classified as NPA
• Who themselves or their partners/ directors/ trustees/ office bearers have been reported as defaulter/ Fraud/ RFA by IBL or any other bank.