SME Times is powered by   
Search News
Just in:   • South Korea's current account surplus widens amid US tariff pressure  • SEBI bars US firm Jane Street from Indian markets, directs it to deposit Rs 4,843 crore  • India will soon be world’s third-largest economy: PM Modi  • India’s chemical sector can reach $1 trillion by 2040, create 7 lakh jobs by 2030: NITI Aayog  • Intense talks continue to reach interim India-US trade deal ahead of deadline 
Last updated: 01 Apr, 2020  

Rupee.9.Thmb.jpg Private banks, NBFCs to continue EMIs, if not informed

Rupee.9.jpg
   Top Stories
» SEBI bars US firm Jane Street from Indian markets, directs it to deposit Rs 4,843 crore
» Intense talks continue to reach interim India-US trade deal ahead of deadline
» India poised to become 3rd-largest economy by 2030, overtaking Germany: Hardeep Puri
» India's industrial production registers 1.2 per cent growth in May
» Govt committed to building safe and smart energy future: Minister
IANS | 01 Apr, 2020
Unlike the public sector banks, customers of private banks and non-banking financial companies (NBFCs) would continue to pay EMIs on their term- loans unless an specific instruction is issued, as per the Covid-19 RBI package.

Several private banks and NBFCs informed their customers on Wednesday that auto debit facility for loan instalment won't be cancelled. If a customer wants to hold equated monthly instalments (EMIs) for three months, they will have to specify that by sending an e-mail to the bank/NBFCs.

"Relief package, #ICICIBank offers its customers a choice of either paying towards their loans/credit facilities or opting for a moratorium till May 31, 2020. Customers are requested to visit icicibank.com to specify choice," the private lender tweeted.

However, most public sector bank have operationalised three-month moratorium without asking customers. Regular EMIs will continue once the customer specifies that he's willing to pay.

Other lenders, like HDFC Bank, Tata Capital, Edelweiss, Bajaj Finserv, RBL Bank, Adi's Bank, IndusInd Bank, Deutsche Bank, Rattanindia and Indiabulls, have announced specific email IDs where a customer will have to write to indicate the repayment choice.

With information on EMI deferment coming in April, most customers will get the deferment benefit of just two months (April and May) unless they have defaulted on paying the March instalment.

Banks have also posted mailers and FAQs on their sites informing customers about the scheme.

Many customers are expected to opt out of the EMI deferment as during the moratorium period interest will continue to accrue on the term-loan's outstanding. The interest accrued will be added to the outstanding and the repayment schedule for the residual tenor will be shifted across the board by three months after the moratorium period.

But you must take into account that under the scheme, interest on loans, though not mandatorily payable immediately, gets postponed by three months, continues to accrue, raising the loan cost.

To give a perspective, suppose your loan outstanding is Rs 1,00,000 and you are charged 12 per cent interest, then every month you are liable to pay Rs 1,000 as interest. If you opt not to service the interest every month, you are liable to pay interest at 12 per cent and accordingly you will pay Rs 3,030.10 at the end of the third month. Similarly, if the interest rate is 10 per cent, you are required to pay Rs 833 a month or Rs 2,521 after three months.

In the case of credit card dues, there is a requirement to pay minimum amount. If not paid, it gets reported to credit bureaus. In view of the RBI circular, the dues in the credit card account won't get reported to the credit bureaus for three months. But an interest will be charged by the card issuer on the unpaid amount.
 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter