HDFC Bank extends moratorium on loan, EMIs, credit card outstandings by 3 months till August; here's all you need to know

HDFC Bank announced that it has extended the loan moratorium by another 3-months

FP Staff June 01, 2020 14:33:22 IST
HDFC Bank extends moratorium on loan, EMIs, credit card outstandings by 3 months till August; here's all you need to know

HDFC Bank announced that it has extended the loan moratorium by another 3-months.

The bank is offering its customers EMI moratorium and credit card outstanding moratorium as a relief measure. "We understand in this current situation there may be disruptions in business leading to low cashflows or the earnings of individuals and self-employed professionals may have been impacted. Our aim through implementing this relief package is to ensure that you can continue to take care of your family, your business and your own self and tide over this temporary situation," the bank said in a statement.

Here's how you can avail of the new rates:

The EMI payments in the month of June 2020 will be processed on the due dates as per standard process. For customers who want to apply for EMI Moratorium in June 2020, and their June EMI has already been deducted, they will get an EMI refund in five working days from the date of their successful EMI moratorium application. They can also avail the moratorium from June 2020 on their credit card, if they wish. Customer can defer your outstanding payment (i.e. make NIL payment) or disable the Autopay from NetBanking.

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What is the new EMI moratorium provided for loans under COVID 19 - regulatory package recently announced by RBI?

The RBI has permitted all Indian banks and financial institutions to offer another moratorium (temporary pause) on their EMI payments for a period of 3 months --due between 1 June-31 August, 2020.

Who is eligible?

All HDFC Bank customers who have availed of retail instalment loan or any other retail credit facilities prior to 1 March 2020 are eligible. Customers having overdues prior to 1 June 2020 may also opt for the moratorium, and their requests shall be considered by the Bank based on its merits.

All agri loans (Kisan Gold Card) and microfinance customers under the Bank’s Sustainable Livelihood Initiative are also eligible. All corporate as well as SME customers are eligible.

What if you have already chosen moratorium for the period of Mar-May 2020? Will your moratorium of Mar-May continue for the period of Jun-Aug 2020?

No. Your moratorium availed earlier will not continue. You will have to make a fresh application on the link provided to register for the moratorium facility for the period of Jun-Aug 2020. In case you are interested in availing the moratorium, the Bank will encourage you to avail of the moratorium for the month of June 2020 only at this point in time as a prudent financial measure. You can come back and apply again for July and August later if you so desire.

What will happen if you choose the EMI Moratorium?

If you choose the EMI Moratorium, it would be applicable post-the Bank accepting the application for the moratorium. However,  if you have the ability to pay your EMI, then the bank encourages you to consider paying the EMI for the period of June-August as per the schedule. Availing the moratorium will incur an additional interest charge on your loan outstanding which you will have to repay in the form of additional EMIs once the moratorium period is over.

If you choose EMI moratorium, the bank will not ask for any EMI payment for the period of moratorium availed by you i.e. till 30 June, 2020 if you avail it for one month or till 31 August, 2020 if you avail it for three months. Interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan. The loan tenure will get extended post application of moratorium.

Customers who have applied for EMI Moratorium in June 2020 and their EMI has already been deducted, will get an EMI refund within five working days. If you apply in July 2020 and you have paid the EMI for June 2020 already, the EMI for June 2020 will not be refunded.

If you do not want the EMI moratorium, what should you do?

If you do not want the EMI moratorium, no further action is required from your side.

Why was the customer's account debited when the RBI had announced a moratorium?

Opting for the moratorium is entirely the customers’ choice. All the bank's customers may not opt for the moratorium given that there is an additional levy of interest payable under the terms of the moratorium. If you wish to opt for the moratorium, the bank will refund the EMI debited and register the loan account under the moratorium process.

 What charges will you pay if  you avail of this EMI moratorium?

If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.

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How will you get this EMI moratorium?

You will have to provide your consent to the bank through the following way.

The link will be provided to you. However, keep your loan account number handy before you start the process.

Your are an NRI customer. How can you apply for the EMI moratorium?

The moratorium is applicable for credit facilities availed in India and it can be availed for EMIs due for the months of June, July and August 2020 only.

In case you are an NRI customer and availed the loan in India, then you can send an email to 'loansupport@hdfcbank.com. Email should be sent only from the ID of the borrower which is registered in the loan account with the Bank.

Format of the Email / Letter is provided below:

  • Subject: Application for EMI Moratorium.
  • Loan Number: I wish to defer my unpaid EMIs falling due between 1 June, 2020 and 31 August, 2020 on the above referred Loan Number and I understand that interest shall continue to be charged on the outstanding portion of the term loans during the moratorium period. Signed by Borrower/s.
  • In case, you are present in India currently, you can also submit the above letter at any nearest HDFC Bank Branch.

How to apply in case you are not able to complete the application in the link provided due to a mismatch in your records?

In case, there is mismatch due to any reason and you are not able to complete the application on the form provided in the link, you can follow the same process as listed above and write an e-mail or submit a letter at your nearest branch in the suggested format.

You have more than one loan from HDFC Bank (Example: Personal loan and car loan). Will you get EMI moratorium for both ?

Yes, you can opt for EMI moratorium for each loan that you have availed from the bank. However, additional interest for the EMI moratorium period will be applicable for each loan separately.

What if you have already paid my EMIs for May 2020 and would like to avail the moratorium till 31st Aug 2020?

You can avail of the moratorium benefits for the months of Jun to Aug 2020.

Does this moratorium apply for credit card outstanding and loans on credit cards?

Yes, the moratorium is available on credit card outstanding and loans availed on credit cards for payments due from 1 Jun 2020 till 31 August 2020. The moratorium allows you to defer the payment till 31 August 2020. You are required to pay the minimum amount due or total outstanding and accrued interest charges on the due date after 31 August 2020.

It would be advisable to continue your payments during the moratorium period in case you wish to avoid extension of the tenors of any loans in your card or to avoid the interest on dues billed in this period.

Are all credit card customers eligible for this moratorium?

Yes. All retail credit card customers will be deemed eligible for the moratorium if they are regular with their payments on or before 1 June 2020 on their credit card and loans taken on the credit card. In case you are interested in availing the moratorium, the bank advises customers to avail of it for June 2020 only at this point in time as a prudent financial measure. You can avail the moratorium for July and August if you desire, by deferring the payments or disabling the autopay from NetBanking. The moratorium is applicable for credit facilities availed in India

How to avail  credit card moratorium?

To avail the credit card moratorium,

(a) voluntarily defer paying the outstanding during this period i.e. make NIL payment

(b) turn off Auto Pay (in case the same is currently availed) through net banking / mobile banking to avail the benefit of the moratorium and reactivate the same post the end of moratorium period

Will interest be levied for the moratorium period on credit card outstanding and loan on credit cards?

Yes, interest will be levied as per the contracted rate on the card. Opting for 3 months moratorium allows you to defer the payment of your credit card dues and loan instalments taken on credit card till 31 Aug 2020. The Bank encourages customers to make full payments towards the outstanding wherever possible to avoid/minimise levy of interest charges for this period. The moratorium is a deferment of payment and not a waiver of interest. You are required to pay the minimum amount due or total outstanding along with accrued interest charges on the due date after 31 August 2020.

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