IDFC FIRST Bank Offers 6 Months COVID-19 Moratorium on Loans

The bank understands that many of its customers’ cash-flow and earnings have been impacted due to COVID-19 crisis and the lock-down imposed by the Government. After RBI’s announcement on moratorium, IDFC FIRST Bank has also announced a policy on providing relief to those borrowers who are impacted by COVID-19 pandemic.

All retail customers of the bank who have availed instalment loan, such as home loans, loan against property, vehicle loans, two wheeler loans, personal loans, consumer durable loans, business loans on instalments, etc. prior to 01.04.2020 are eligible for the relief of up to 6 months moratorium on payment of instalments. The bank has advised the customers that opting for the moratorium will lead to interest being charged on the outstanding loan amount during the said period as well as the extended tenure of their loan, hence customers should avail the benefit only if they are unable to service their loan.

Interest shall continue to accrue on the outstanding portion of such term loan during the moratorium period at the same rate as contracted for the respective loan.

The bank has extended moratorium by 3 more months, i.e., from 01.06.2020 to 31.08.2020. The move came after the RBI issued a notice on 23.05.2020 regarding the revised guidelines of COVID-19 Regulatory Package.

FAQs

✅ What is the period considered by the bank for grant of the moratorium facility?

The bank will apply the moratorium for unpaid EMIs of March, April, May, June, July and August 2020.

✅ How do I avail a moratorium?

If you want to avail the moratorium relief, send an SMS to 80070 10908 from your registered mobile number, typing your Loan Account Number and the bank will activate the moratorium facility for the unpaid EMI of March, April, June, July and August 2020. You can also request for moratorium through an email at help@idfcfirstbank.com from your registered email address mentioning your Loan Account Number.

✅ How will I know that my EMIs have been successfully shifted to moratorium?

The bank will communicate this to you on your registered email address.

✅ What are the benefits of this facility for me?

• Your loan instalments will be deferred for up to 6 months
• The delayed loan payment does not get reported to the credit bureau as a defaulter during the moratorium period
• No cheque bounce charges or overdue charges for instalments will be applied during the moratorium period.

✅ How will I be eligible to avail the moratorium facility?

Make sure there are no overdues in your loan account on or prior to 29.02.2020, to be eligible for the facility. You can regularize your loan account if you make the payment for instalments overdue on or prior to 29.02.2020. By doing so you can avoid cheque bounce charges or overdue charges and improve your credit score.

✅ What if I have no overdues prior to 29.02.2020 but my cheque/ECS for March has bounced?

All unclear instalments between 01.03.2020 and 31.08.2020 are automatically migrated to the moratorium facility, as per RBI guidelines.

✅ If my instalment for March 2020 has been cleared and I don’t have any overdues pending, can I get a refund of my EMI for March 2020?

In that case the bank will not provide a refund. However, if you have availed the moratorium facility, the instalments for only April, May, June, July and August 2020 will be moved to the moratorium.

✅ What if I don’t wish to avail a moratorium?

It is a good idea to skip the moratorium and may instalment payments on time if you are not facing any challenge with your cash flows. No action will be taken by the bank if you do not wish to avail the moratorium and the bank will continue to present your cheque/ECS.

✅ Will the bank charge any additional interest under moratorium?

If you avail moratorium facility, interest will keep accruing on the outstanding balance of the term loan during this period at the contracted rate of interest. The bank will collect such interest from you by extending the original tenure of your loan contract.

✅ Can I make the part payment/ foreclosure during this moratorium period?

Yes. If there is an increase in your cash flow situation, you can prepay the instalments and regularise your loan account.

✅ Can I avail the moratorium of 6 EMIs and also pay the previous outstanding amount in Sep 2020 if I already have overdue EMIs, which I did not pay earlier?

If your loan account has overdue EMIs/other charges before 29.02. 2020, kindly regularise your loan account for the period prior to 29.02.2020 to avoid penal charges payment and reporting to the bureau. Contact the bank to regularise your account or Make Online Payment by Clicking the Link.

✅ Will my Easy Buy Card (EBC) get blocked if I opt for moratorium?

No

✅ Is the moratorium applicable for rural customers as well?

Yes