PNB HFL Loan Moratorium for COVID Relief: Know FAQs, Terms & Conditions Here

PNB Housing Finance has offered EMI Moratorium to its customers for a total of 6 months, starting from March 2020 to August 2020. The customers can choose to defer the principal as well as interest payment during the Moratorium period and ease the cash flow issues owing due to lockdown induced by COVID pandemic spread.

As a result, the repayment schedule for these loans will be extended by 6 months. The applicable interest will continue to accrue as per the contracted rate and accumulate interest will be payable after the end of Moratorium.

However, the choice of Moratorium will not hurt the terms and conditions of the loan.

Easing the process to opt for repayment break, the Housing Finance Company offers three options to customers:

• Reply to the communication sent as SMS by PNBHFL on your registered mobile phone.
• Fill an online application form here
• Share your consent by filling in name, loan account number, pan, verify your identity, and choose the option and submit.

Impact of Moratorium on a Housing Loan

Let’s understand the impact of Moratorium with an illustration.

Say, you have a Home Loan of Rs. 50 lakh at 8.5% interest for 10 years.

Your EMI is Rs. 62,000 (approximately).

Now you have two EMIs due for April and May months. You choose to take the Moratorium.

April The principal of Rs. 50 lakh will bear interest at 8.5%/12 = Rs. 35,000. So at the end of Ist month of Moratorium the loan amount will Rs. 50,35,000.

You continue Moratorium to 2^nd month.

Interest will apply on a loan amount of 50.35 lakh now. This month interest accrued will be Rs. 36,000.

The total outstanding for next month will be Rs. 50 Lakh + 35000 +36000= 50.71 lakh.

After three months, the new principal will be Rs. 51.07 Lakh.

The loan tenure will be extended for three more months at the end, but this Rs. 1.07 lakh extra is an additional loan burden and will thus be adjusted in your EMIs across the loan tenure.

FAQs

✅ What is Moratorium?

A Moratorium is a loan holiday, i.e., the duration of loan where you do not make any instalment to the lender. 

✅ What is PNB HFL COVID 19 relief moratorium?

Under COVID 19 relief package PNB HFL is offering customers an option to opt for Moratorium of 6 months. During this period, you need not make any instalment, and there will be no late payment or cibil downgrading for the same. However, the interest will continue to accrue at the contracted rate. The accrued interest will be payable after the end of the moratorium period.

✅ Is this waiver or deferment of EMIs?

A moratorium is essentially delay of payments. It is not a waiver, and customers are liable to pay the EMIs as well as accumulated interest later on.

✅ What is the process to opt for COVID 19 Moratorium?

To opt for Moratorium, you are required to request the same. You can apply through the following modes:

a) Website link 
https://www.pnbhousing.com/covid-19-moratorium-regulatory-package-rbi/

b) Shortcode SMS 
In response to communication received on your registered mobile.

c) Email

✅ Is there any last day to apply for Moratorium?

No. You can apply as per your convenience, up till the last day i.e., 31^st Aug 2020.

✅ Can opting for Moratorium affect my CIBIL score?

No. As Governor of RBI noted, the rescheduling of payments due to COVID 19 Moratorium will not qualify as a default. It will also not be reported to credit bureaus. So, delaying your EMIs will have no impact on your credit score.

✅ Is it possible to apply for a home loan and opt for a Moratorium?

No. The current Moratorium relief is available only for existing loan accounts before March 1, 2020.

✅ Is Moratorium applicable on principal or interest?

A14. The Moratorium is applicable on instalments falling due from 1.03.2020 to 31.8.2020, including:

1. Principal and/ or interest
2. Bullet repayments
3. Equated monthly instalments

✅ Which PNBHFL loans are eligible for Moratorium?

All term loans (both housing and non housing loans) customers are eligible for Moratorium benefit. The loan EMIs outstanding as on March 1, 2020, till Aug 31, 2020, are eligible for EMI break.

✅ Can I pay in between the moratorium period?

Yes. It is a relief package. If you deem fit to repay, do so and reduce the interest.

✅ Can customers with multiple loan accounts apply for EMI break?

Yes. A customer can apply for Moratorium for multiple accounts.