Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank, IDBI Bank grant 3-month moratorium to customers on EMI/interest payment on loans to deal with coronavirus crisis

Leading banks like Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank and the IDBI Bank took to Twitter to inform their customers that have provided a three-month moratorium on payment of EMIs, interest on loans. terms loans etc.

Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank, IDBI Bank grant 3-month moratorium to customers on EMI/interest payment on loans to deal with coronavirus crisis
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NEW DELHI: Following Reserve Bank of India's (RBI) instructions, several leading banks of the country had provided a three-month moratorium to its customers on payment of EMI, interest on loans etc to deal with the current coronavirus pandemic. The central bank had recently sought to cushion both borrowers and lenders against the unprecedented disruption triggered by the COVID-19 outbreak and allowed the banking companies to provide a three-month grace period on loan repayments. 

It also gave banks the breathing space on default tagging in the event of customers skipping payments. All term loans, including agricultural term loans, retail and crop loans and working capital payments, will be covered by the three-month moratorium, the RBI said. 

“All commercial banks, NBFCs (nonbanking finance companies), all-India financial institutions are permitted to grant a moratorium of three months on payment of all instalments falling due between March 1, 2020, and May 31, 2020,” the RBI had said on Friday.

The measures came on the day the central bank slashed the benchmark repo rate to a record low to help spur demand when the nation of a billion-plus consumers is to end its Covid-19 lockdown by mid-April as per the current timetable.

“The repayment schedule for such loans as also the residual tenor will be shifted across the board by three months after the moratorium period,” the central bank said. “Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

Leading banks like Indian Overseas Bank, Indian Bank, UCO Bank, Canara Bank, Punjab & Sind Bank, Syndicate Bank and the IDBI Bank took to Twitter to inform their customers that have provided a three-month moratorium on payment of EMIs, interest on loans. terms loans etc.

Here are some important tweets from leading banks-

Indian Overseas Bank 

''In terms of Covid 19- Regulatory Package, borrowers are eligible for moratorium/ deferment of installments/EMIs for Term loans falling due from 01.03.2020 to 31.05.2020.''

Indian Bank

As per COVID 19 regulatory package of RBI, Indian Bank allows a moratorium by deferring payment of EMI/ Term Loan Instalments & Interest/ Interest on Working Capital for 3 months wef 1st March 2020.   

UCO Bank

An important update from us at UCO Bank.

Canara Bank 

In terms of Covid 19- RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 & repayment period gets extended accordingly. SMS also has been sent to customers to avail the same. 

Punjab & Sind Bank

Deferment if loan instalments on account of COVID-19. We understand these are challenging times. As a Special dispensation, deferment of instalments for the month of March, April and May 2020 towards your loan accounts is available.

Syndicate Bank

EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans falling due after 1st March 2020 and upto 31st May 2020 have been deferred by 3 months.

IDBI Bank 

IDBI Bank extends moratorium on Term Loan instalments/interest and deferment of interest on working capital loans of borrowal accounts impacted due to COVID 19 for 3 months. Customers whose cash flows are not impacted and wish to continue payments are allowed option to pay as per existing schedule. For details, please visit http://idbibank.in.

In a momentous and unconventional move last Friday to stave off the financial sector from the consequences of the coronavirus pandemic, RBI had brought down the key repo rate - at which it gives short term loans to banks-- to a record 4.40 per cent, down by 0.75 per cent.

It also provided the much-needed liquidity support by cutting the cash reserve ratio (CRR) to 3 per cent from 4 per cent earlier.

This will free up Rs 1.37 lakh crore for the banks and financial institutions which can be used for customer lending. CRR is the percentage of deposits to be parked with the RBI in the form of cash.