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.
Below is the detailed information regarding the relief under RBI COVID19 package in question-answer format:
✅ 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.
- Who have not complied with terms & conditions of earlier sanction under the relief
✅ What is the benefit for credit cardholders?
Cardholders will be granted a moratorium of 3 months for payment of all Credit Card dues (both interest as well as principal repayment) that are falling between 01.06.2020 to 31.08.2020. This means the moratorium will apply to the entire EMI amount and purchase outstanding amount on your Credit Card offered by IndusInd Bank. However, during this period, the interest charges will be accrued on the outstanding amount, which will have to be paid when the moratorium period is over.
✅ How can I avail the benefit of this moratorium as a cardholder?
This moratorium benefit is available to all cardholders. If you wish not to choose the relief, you can do so by continuing to pay your outstanding dues on IndusInd Bank Credit Card as per the due date of payment mentioned in the monthly statements.
✅ Should I avail of the moratorium on the credit card?
You must be aware that this moratorium period is only deferment of payment. The bank is not waiving off your credit card dues. The interest will continue to accrue on your outstanding credit card dues for the moratorium period and this interest will be added to your outstanding amount, leading to an increase in your payment burden when the moratorium period gets over. Therefore, it is recommended to opt for it only if you are going through a financial crisis, else it is better to continue paying your credit card dues regularly.
✅ Will the moratorium make any changes on my IndusInd Bank Credit Card?
No. It will not lead to any changes in the terms & conditions of your IndusInd Bank Credit Card.
✅ Will the bank levy any late payment fees during the moratorium?
✅ Will I receive monthly Credit Card statements during this moratorium period?
Yes. The bank will continue sending credit card statements during the moratorium period, mentioning the due outstanding amount, accrued interest, and the payment due date.
✅ What happens to the ECS/Standing Instruction that I have set for my Credit Card payments?
Get in touch with the bank and deactivate the existing ECS/Standing Instruction (SI) if you wish to avail of the moratorium. ECS/SI mandates will continue if there is no specific instruction given by you to the bank to deactivate them.
✅ Does this moratorium affect my credit rating?
✅ Can I pay my credit card dues during this moratorium period?
It is up to you. However, it is recommended if you are financially able to pay your credit card dues, you should continue to do so to avoid paying a higher amount after 31.08.2020 due to the accrued interest during the moratorium period.
✅ What will happen to the existing EMI on my credit card?
If you choose moratorium benefit, the existing EMI dues will be treated as a part of the total outstanding when the moratorium period ends.
✅ What happens on the completion of the moratorium period?
After the moratorium period ends, the entire outstanding dues on credit card and accrued interest charges will be payable as per the credit card statement due date of September, 2020.
✅ What relief is provided for retail term loans under the package?
Banks are permitted by RBI to extend the moratorium on payment of the instalments falling due between 01.06.2020 and 31.08.2020. During this moratorium period, borrowers can choose to defer their EMI payment. However, the bank will continue to levy the interest on the outstanding loan amount. The accrued interest during this moratorium period will be accumulated in the outstanding loan amount and the tenure of your loan will be extended, keeping the EMI same.
✅ How to get the benefit of a moratorium on loan instalment?
If you have provided an instruction to debit your account via NACH/SI, the bank will present them to pay the EMIs during the said moratorium period, as per their due date. If you wish to avail of the moratorium, then you can send an SMS with the keyword IN to 5676757 from your registered mobile number, or you can register your request for a moratorium on https://moratoriumoptin.indusind.com/ within the date communicated by the bank. On receiving the SMS/request via this link, the bank will provide the moratorium benefit to you for unpaid EMIs.
✅ I do not need the moratorium benefit. What should be my action?
If you have provided an instruction to debit your account via NACH/SI, the bank will present them to pay the EMIs during the moratorium period on the due date. If no standing instruction is provided, you can pay via https://www.indusind.com/loanemipayments.html link on or after the EMI due date. The amount being paid by you will be remitted to your loan account as prepayment and will be adjusted against your principal loan amount. No prepayment charges will be levied by the bank.
✅ Will the bank charge a late payment fee for the moratorium facility?
✅ What happens after the end of the relief period?
If you have opted for this moratorium facility, the bank will continue to accrue interest on the outstanding term loan amount during the moratorium period. This accrued interest will be added to the outstanding loan amount and the tenure of repayment of the loan will be extended, keeping the EMI as the same.
✅ Can I opt for the moratorium for 1 month and opt out for another?
If you opt in for the moratorium, it will be applicable until the moratorium period ends, i.e., 31.08.2020. However, you can pay EMIs due through the digital link https://www.indusind.com/loanemipayments.html on or after the EMI due date.
✅ If I opt for the moratorium, how will the bank treat different facilities (OD / DLOD) under LACR?
- LACR Overdraft (OD): The bank will defer the interest during the moratorium period and the accumulated interest amount will be applied on 01.09.2020.
- LACR Drop Line Overdraft (DLOD): The bank will provide deferment for both interest and limit drop of each month under the moratorium period. The interest accumulated will be applied to the account on 01.09.2020, and the limit drop at the agreed monthly rate will be continued after the moratorium period, resulting in an extension of the facility tenure.
✅ Can I avail the moratorium for interest serving only if I have a Drop Line Overdraft facility?
Yes. In that case, the bank will apply interest for the month need on the respective due dates within the moratorium period and you will have to service it as per the terms of sanction. The moratorium for principal will be offered resulting in the extension of tenure of the facility.
✅ Will the EMI amount change?
No. There will be no changes in the EMI amount. However, there will be a change in the repayment tenure. The tenure of your loan may be extended by a few months.
✅ If I have already availed moratorium during March to May 2020, will it get automatically extended till 31.08.2020?
No. You will need to opt for moratorium afresh for the extended period, i.e., 01.06.2020 to 31.08.2020. If you want to avail the extended moratorium, you can send an SMS with the keyword IN to 5676757 from your registered mobile number on or before 31.05.2020. The bank on receiving the SMS will provide the full moratorium benefit to and no instalments will be debited during the moratorium period.
✅ What if I opt for moratorium benefit on Loan Against Property initially, but change my mind later on?
If you opt for the moratorium, the bank will not debit instalments on the due date. However, if later on you change your mind and want to pay the instalment, you can make the payment online on the link: https://cfddealer.indusind.com/collections/loanpay directly, on or after the EMI due date. This link is applicable for ‘Loan against Property’ instalment payments only. You can also approach the bank if the link doesn’t work.