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HDFC Bank vs ICICI Bank vs Axis Bank: EMI moratorium terms, charges

Most banks have decided to go for the "opt-in" option, putting the onus on the borrower to take the initiative of informing the bank (either by calling or via mail) that they want to go for the three-month breather.

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Last Updated: Apr 07, 2020, 09.26 AM IST
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The Reserve Bank of India (RBI), on March 27, 2020, announced that all lending institutions offer a three-month moratorium on term loan equated monthly instalments (EMIs). Under RBI's relief package, banks and other lenders, have been instructed to give borrowers a grace period of three months for payment of EMIs. These include home loans, auto loans, personal loans, EMIs on debit cards and even credit card dues.

This means that if you have a loan going, you need not pay the EMI for March, April and May. This is not a waiver of your EMIs for three months, instead it is a grace period for three months, to tide over whatever difficulties the coronavirus lockdown may have caused you.

Most banks have decided to go for the "opt-in" option, putting the onus on the borrower to take the initiative of informing the bank (either by calling or via mail) that they want to go for the three-month breather.

Here is a look at the details of the EMI loan moratorium of three private sector lenders: HDFC Bank, ICICI Bank, and Axis Bank.

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

If you opt for the three-month moratorium, "Bank will not ask for any EMI Payment till May 31st 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. -For example, if the EMI for the month of Mar'2020 has been paid and moratorium for April & May'2020 has been availed, then the loan tenure will be extended by 2 months," states the bank.

Even if you have more than one loan with the bank, you can opt for the grace period for each of them separately.

Also read: All the details of HDFC Bank's EMI moratorium

With regards to credit card dues, the moratorium is available on credit card outstanding and loans availed on payments due from March 1, 2020 till May 31, 2020. The moratorium allows you to defer the payment till May 31, 2020. You will have to pay the minimum amount due or total outstanding and accrued interest charges on the due date after May 31 2020.

To avail the moratorium on loan EMIs, call on this number and follow the instructions - 022-50042333, 022-50042211, or submit your request on the bank's website. Remember to keep your loan account number handy. 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.

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

ICICI Bank
According to the bank's website, borrower can choose to OPT-IN or OPT-OUT, for availing of the moratorium. The borrower will have to specifically OPT-IN for availing of the moratorium and postponement of payments falling due for payment between the period March 1, 2020 and May 31, 2020. If you have more than one loan or credit card, the moratorium option will have to be exercised individually or separately for each type of credit facility.

The accrued interest would be added to the principal amount which will increase the residual tenure of the loan except in cases where extension of tenure is not possible in which case the EMI amount will increase.

Also read: All the details of ICICI Bank's EMI moratorium

Let us say, Kumar availed of a housing loan in March 1, 2020 amounting to Rs 1 crore with a loan tenure of 236 months. If Kumar wants to avail of moratorium of instalment of Rs 90,521.00 which is due on April 1, 2020 then the interest for the month of March amounting to Rs 75,000 will be added to the principal amount and revised opening principal amount on April 1, 2020 will become Rs 10,075,000. The interest will be computed on revised principal. In this case Kumar's tenure will increase from 236 months to 249 months considering the unchanged rate of interest and instalment amount during this period.

For all credit card dues (including any unpaid EMIs till the respective payment due date), standard interest rates of the card variant as per the applicable terms and conditions will be levied. For all EMI transactions, the interest rate specified at the time of availing of EMI facility would be levied.

You can make payment against the outstanding amount on your credit card during moratorium period. The interest would be levied only for remaining outstanding amount.

With regards to purchases made on your credit card during the moratorium period, any unpaid dues will also attract interest charges (as per standard interest rate of the card variant as mentioned in applicable terms and conditions) if not paid within its interest-free period (grace period), i.e., by the respective payment due date.

Also read: All the details of ICICI Bank's moratorium on credit card dues

For any EMIs on your credit cards, they will be billed in your regular credit card statement cycle, EMIs would continue to be billed in your statement as per the original amortisation schedule. For example, if your EMI was to be billed on Apr 15, May 15 and Jun 15, and you have availed of the moratorium benefit on Apr 05, the EMIs would still be billed on Apr 15, May 15 and Jun 15.The payment for these billed transactions will need to be done as per the payment due date of the Jun 2020 statement to avoid any penal late payment. In case of non-payment of statement dues (which includes EMIs billed) by the respective payment due dates, interest charges will accrue at the standard interest rates.

If you do not want to avail the moratorium, then you can OPT-OUT by clicking on the link shared bank through (i) SMS or (ii) e-mail. "You may also visit ICICI Bank's website www.icicibank.com failing which it will be deemed that borrower/ customer has opted for moratorium," the bank states.

Axis Bank
By availing the moratorium option, you will defer your immediate instalments/payments/accrued interest. "It is only a deferment option and not a concession or waiver since interest would continue to accrue for this period. The repayment would resume from June 2020, once the deferment period is over," states the Axis Bank website. For all loans/credit cards/credit facilities, customers will have to opt in to avail the moratorium benefit and defer the payments falling due between March 1, 2020 and May 31, 2020.

If you choose moratorium,
For term loans
  • Bank will not ask for further EMI payments till May 2020.
  • There will be levy of interest at the applicable rate of interest of the loan for the period of EMI moratorium on the loan outstanding.
  • The residual tenure of the loan would be extended to the extent of applicable moratorium period.

Also read: Details of Axis Bank's EMI moratorium

If you have a standing instruction with the bank, no separate instructions required from your end. "The aspect of Direct Debit/Standing Instruction will be managed by the bank upon receipt of a confirmation from your end to avail the moratorium option," states the bank.

If you avail the moratorium, you will not be able to reverse your decision till end of moratorium period. For example, if you avail the moratorium for April 2020, it will be also applicable for May 2020.

With regards to credit card dues, at the end of the moratorium period, the statement generated will reflect the total outstanding at that point in time, including interests, fees and other charges. You will need to pay at least the minimum amount due.

If you opt for a moratorium, you will not be allowed to make any fresh purchases. This restriction will be lifted once you pay at least the minimum amount due as indicated in your June 2020 statement.

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