HDFC Loan Moratorium Explained: Will Your Credit Score be Affected? What if You Have Multiple Loans? Private Bank Answers All Questions Related to EMIs

Mumbai, April 1: HDFC Bank on Wednesday allowed three months moratorium on all loans and credit card installments after economic crisis prevailed in the country due to coronavirus lockdown. The private lender said that all customers who have availed of a retail installment loan or any other retail credit facilities prior to March 1, 2020, can opt for this facility. HDFC bank said that it would not ask for any EMI Payment till May 31, 2020. Bank Loan EMIs: RBI Recommends 3-Month Moratorium And Interest Deferment on All Loans Amid COVID-19 Crisis.

However, the interest would continue to accrue on the principal outstanding for the period of the moratorium, and the duration of the loan repayment would also be extended by the period for which the moratorium has been availed. Notably, opting for the EMI moratorium will not affect Credit rating or score of customers. The HDFC bank’s announcement regarding the three months moratorium came days after the Reserve Bank of India urges banks to give relief to people during the economic crisis. Read Full Text of RBI Plan.

Here Are Important Things to Know About HDFC’s Moratorium:

Who is Eligible For Availing HDFC Moratorium?

All HDFC Bank customers who have availed of a retail instalment loan or any other retail credit facilities prior to March 1, 2020 are eligible.

Customers having overdues prior to March 1, 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 also eligible.

What Will Happen If Bank Customer choose the EMI Moratorium?

Bank will not ask for any EMI Payment till May 31, 2020.

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 by the corresponding period for which the moratorium has been availed.

 If Customer opt For Moratorium After the Deduction the EMI?

All customers may not opt for the Moratorium as there is an additional levy of interest payable under the terms of the Moratorium. If one wishes to opt for the moratorium, the bank would refund the EMI debited and register your Loan account under the moratorium process. Loan EMI Moratorium: List of Banks Allowing Borrowers to Delay Payment of March Installment By 3 Months Amid Coronavirus Lockdown.

How do Customers Can Get This EMI moratorium?

Bank customers have to provide your consent to the bank through any of the following ways:

They can call on this number and follow the instructions – 022-50042333, 022-50042211 , OR can submit their request in a few clicks here:

Can Moratoriam be Provided if Customer Has More Than One Loans?

Yes, customer can opt for EMI moratorium for each loan. However, additional interest for the EMI moratorium period will be applicable for each loan separately.

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 March 1, 2020, on their credit card outstanding and loans taken on the credit card.

How Do Customers Can avail The 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. However, interest will be levied as per the contracted rate on the card.

Prime Minister Narendra Modi, on March 24 announced a countrywide lockdown to avoid the spread of coronavirus. The country will remain under complete shutdown till April 21. Due to this, the economy of the country is likely to hampered, so the RBI allowed all banks to give three-month moratorium to their customers.

(The above story first appeared on LatestLY on Apr 01, 2020 06:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).