RBI Regulatory Package- What to do with loan account when moratorium period is over?

Hello Friends!

Here I came with a very important information to be share with you. As you know the corona virus ( COVID-19) outbreak has been declared as pandemic by the WHO causing huge impact on people's live, families and communities. It has also affected severely the industrial , service and business entities and overall economy of the country.

To ease our the difficulties of the borrowers in paying loan installment, interest RBI announced the Regulatory Package and consequently all lending institutions have been permitted to grant a moratorium of six months from 01.03.2020 to 31.08.2020 to all eligible term loans, demand loan, CC , OD and credit card dues. Borrower have also been provide with asset classification benefit during the moratorium period.

Now as you know the moratorium period is ended on 31.08.2020 then many question like, How will we need to pay the dues pf six month, whether bank will ask to pay the total dues in one instance, whether my loan will be classified NPA etc. must be moving around the mind of borrower who availed the moratorium period .

Now I must say 'Don't Worry'.

The RBI has directed the Banks to follow the following activities in loan account after moratorium period is over.

If you have availed Term loan for example- Personal Loan, Housing Loan, Vehicle Loan, Term loan for business etc. then you have option to pay the EMI/installment of moratorium period upfront or pay at the end of the loan tenure along with the last installment.

Here I will suggest you to pay the dues of the moratorium period partly to minimize the burden on you.

If you have availed the CC/OD working capital loans then you have option to pay the dues in one instance in the month of September 2020 or get the interest of the six month funded by the Bank. The Bank will fund you the interest accumulated in last six month with interest rate as applicable in your CC/OD account. You need to repay the interest funded amount in six month i.e. from September 2020 to March 2021.

Credit card Customers: The relief is of extending moratorium of 6 months from 01.03.2020 o 31.08.2020 for credit card dues falling due during the period. The demand from 01.09.2020 onwards will be raised to such card holders with the revised repayment demand.

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