YES Bank’s COVID-19 Moratorium for Term Loans, Cash Credit & OD- All You Need to Know
Following RBI’s guidelines, YES Bank has offered a repayment moratorium for customers of Term Loans, Cash Credit and Overdraft facilities. All these customers are now allowed to defer the payments falling due between March 01, 2020, to Aug 31, 2020.
The bank has outlined its guidelines and shared frequently asked questions to help customers avail of the regulatory package and ease their cash flows.
Check Yes Bank’s Moratorium Extension Guidelines for Credit Cards here: YES Bank Extends COVID 19 Moratorium Package till Aug for Credit Card Customers
The last date for applying for Moratorium on Credit Cards is June 9, 2020.
If you opt for COVID 19 Moratorium on your term loan, a new repayment schedule will be shared by the bank. The interest will continue to accrue on the unpaid amount, and customers are liable to pay this after the moratorium period.
The bank has outlined its guidelines and shared frequently asked questions to help customers avail of the regulatory package and ease their cash flows. If you opt for COVID 19 Moratorium on your term loan, a new repayment schedule will be shared by the bank. The interest will continue to accrue on the unpaid amount, and customers are liable to pay this after the moratorium period.
If you have previous outstanding prior March 2020, you must clear your outstanding in order to avail moratorium benefit. Anyone who wants to opt for the COVID 19 Moratorium relief package needs to make a request via SMS, Email, or website link. Make sure you use a registered email id or mobile number for making the request.
The Yes Bank has requested customers to make the Moratorium requests by April 15, 2020. The bank has reserved the right to assess the eligibility of customers for the same. Also, business and MSMEs Customers must contact RMs to avail of the deferment benefit.
Further, the Yes Bank has requested all customers who can afford the repayments should continue making the same as the interest will continue to accrue during the loan holiday period.
Understand the Impact of Moratorium with an example from Yes Bank
Principal outstanding: Rs 15 lakh
Residual tenure: 15 years
Moratorium: 6 Months
YES Bank answers FAQs for Covid19 Moratorium
✅ Do I get an automatic opt-in for moratorium benefit?
No. You need to request via SMS, email, or through the website. The bank is sending an SMS & emails to the registered mobile numbers & register email ids of the customers. You can click on the link and follow the instructions to opt-in for Covid19 Moratorium. The request should be made before April 15, 2020.
The link for requesting the EMI deferment online is:
✅ What is the eligibility requirement for Moratorium?
Your account should be classified as ‘Standard’ as on March 01, 2020. No Fraud, Red Flagged Account, or Wilful Defaulter accounts are eligible for Moratorium.
✅ What are all products eligible for Yes Bank moratorium?
Yes Bank is offering Moratorium as per RBI guidelines. So customers of all term loans including agricultural loans, retail and crop loans, and working capital facilities are eligible to opt for repayment deferment for following types of payments:
- Principal/ interest components
- Bullet repayments
- Loan Equated Monthly Instalments or EMIs
- Credit Card dues & EMIs
✅ How will my loan tenor be adjusted?
For retail loans with EMIs, the tenor will be extended according to the moratorium period. The customer, however, will bear an additional EMI on account of accrued interest during the moratorium period.
For non EMI based corporate loans, the repayment schedule will shift instalments by a period of up to six months.
✅ After Moratorium do I need to submit fresh Auto Debit / Post Dated Cheque’s / NACH mandates?
After Moratorium EMI will not change as the bank will extend the tenure accordingly. However, at the end of the term, when the mandate expires, you would need to set a new request.
✅ When would I be paying the accrued interest during the moratorium period?
As for Term Loans, the accrued interest will be paid after the moratorium period by adjusting the EMI schedule. For CC/OD facility, the accrued interest will be payable immediately in the September statement.
✅ Can I make any repayment(s) despite opting for Moratorium?
Yes, these payments will be considered as an advance payment for future dues.
✅ Are there any penal charges or penal interest for Moratorium?
No. Only the contracted rate of interest is accrued during the Moratorium.
✅ Will Moratorium affect my credit score?
The Moratorium under the COVID19 relief package will have no adverse impact on your credit score or asset classification. Any delay in payments after the moratorium period will be duly reported to Credit Bureaus and can hurt your credit rating.
✅ What about loans through Self Help Groups/Joint Liability Groups? Is specific request required for Moratorium?
No. The moratorium scheme is automatically extended to such borrowers.
✅ How do I avail of the benefit of this package for my working capital credit limit?
You need to substantiate the impact of COVID 19 on your cash flows, and Bank will make an independent assessment to reassess your working capital cycle or drawing power. If there is any ad-hoc increment, it will be closed by December 31, 2020.
✅ Are Working Capital Demand Loan/ Dealer financing / Packing Credit / Commodity Financing are eligible for Moratorium?
Yes. Write to the Relationship Manager for taking forward this communication and assessment.
✅ At what rate, interest will be charged on my Credit Card during Moratorium?
The interest rate accrued will be as per the fixed-rate communicated to you when you purchased the card. You can check the same on the Most Important Terms and Conditions (MITC) document on the bank’s website.
✅ How do I not opt for Moratorium on my Credit Card?
You do not need to do anything. Continue making payments as previously.
✅ Will Moratorium affect my Credit Limit?
It depends on the YES BANK’s discretion.
✅ Can I continue to use my Credit Card during the Moratorium period?
Yes. Cardmembers can use their Credit Cards as per the available limit.
✅ What happens to the EMI facility on my Credit Card?
You get payment deferment for EMI Plan as well. The repayment can be made on the due date at the end of the Moratorium.
✅ Will I continue to get the Credit Card statement during Moratorium?
Yes. However, payment need not be made if you have opted for Moratorium.
✅ Will standing instructions including YES PAY NOW for rent or utility bill payments work?
Yes. They will continue as far as the credit limit is available.
✅ Will I be eligible for EMI on call or Quick Loan after opting for Moratorium?
No. These facilities will not be available with Moratorium.