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Yes Bank loan EMI moratorium: All the terms, charges

Various banks have announced details of the EMI moratorium on their websites. Here is a look at the details of Yes Bank's moratorium on loan EMIs and credit card dues.

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Last Updated: Apr 03, 2020, 12.59 PM IST
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On 27 March 2020, the Reserve Bank of India (RBI) said that all lending institutions, including banks and housing finance companies, will have to give their borrowers a three-month moratorium on term loans. The moratorium was for payment of all instalments falling due between March 1, 2020 and May 31, 2020. According to the RBI, the deferred instalments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) equated monthly instalments (EMIs); (iv) credit card dues.

Various banks have announced details of the EMI moratorium on their websites. Here is a look at the details of Yes Bank's moratorium on loan EMIs and credit card dues. These are the details as published by the bank on its website.

  1. I am interested in availing the moratorium benefit for my term loan/CC/OD. Will I get it automatically?
    You can avail the moratorium scheme for your term loan, Cash Credit (CC) or OD facility(ies) for the period March 01, 2020 to May 31, 2020 by making a request to the Bank to opt in for the scheme, provided your account classification with the Bank is ‘Standard’ as on March 01, 2020 and is not reported as Fraud, Red Flagged Account or Wilful Defaulter by the Bank or any other Banks.An SMS will be sent by the Bank to your registered mobile number requesting you to ‘OPT IN’ for the scheme. You will have to click on the link provided in the SMS and follow the instructions if you choose to opt-in, on or prior to April 15, 2020, unless otherwise extended by the Bank.
  2. In case I opt for moratorium, which instalments does the moratorium cover?
    The moratorium covers all unpaid principal and interest dues for the month of March, 2020 and all principal and interest amounts falling due in the months of April and May, 2020.
  3. If I avail this moratorium, is it that the Bank will not charge any interest during the moratorium period?
    In line with RBI guidelines, the Bank will continue to charge or accrue interest during the period of moratorium. This interest accrued during the moratorium period shall need to be paid by the customer to the Bank at the end of the moratorium period. The Bank encourages the Borrower’s with adequate funds and cash flows to continue to pay the instalments to avoid additional interest and elongation of the tenor.
  4. My loan is overdue because the principal / interest for earlier months is unpaid. Will I get standstill benefit for my account so that it does not get classified as Non-performing account (NPA)?
    The moratorium benefit for the principal and interest as per RBI guidelines is only eligible for dues falling between March 01, 2020 and May 31, 2020, and not for overdues outstanding as on March 01, 2020. All overdues prior to March 01, 2020 shall continue to attract the IRAC guidelines as applicable, without any moratorium dispensation. Hence, you are requested to clear your outstanding dues or default pertaining to the period prior to March 01, 2020, for which the extant IRAC and provisioning norms shall apply.
  5. How will my loan tenor be adjusted if I avail for the moratorium benefit?
    For the retail loans under the Equated Monthly Instalments (EMI) structure, the tenor will be extended by the corresponding period for which the moratorium is availed e.g. if the EMI for the month of March, 2020 is paid, and the moratorium for April and May, 2020 has been availed, then the loan tenor will be extended by two months. However, there will be additional EMIs which will be payable on account of the impact of the deferred interest during the moratorium period.For example, a customer with an EMI based loan having Principal outstanding of INR 15 lakh with a residual tenure of 15 years, would need to pay an approximate additional interest of INR 1.01 lakh [assuming ROI of 8%] i.e. approximately 11 additional EMIs (which will include the three EMIs pertaining to the moratorium) due to the three months moratorium.For non EMI based corporate loans, the repayment schedule for the term loan shall have a parallel shift of all instalments by a period of up to three months, in case the moratorium benefit is availed.
  6. Do I need to submit fresh Auto Debit / Post Dated Cheque’s / NACH mandates?
    No, if you opt for the moratorium scheme, the residual tenor will increase to recover the accrued interest during moratorium period. However, in case the EMI or instalment amount increases or existing NACH mandate or PDC expires, then a fresh mandate or PDC will be required.
  7. When do I have to pay the interest that would have accrued during the moratorium period?
    Term Loans – The accrued interest shall be payable after the completion of the moratorium period. The schedule of repayment of such interest shall be communicated by the Bank to the borrower.For CC/OD facility, the accrued interest shall be payable immediately after the completion of the moratorium period on June 01, 2020.
  8. What if I make any repayment(s) during the moratorium period after availing the moratorium benefit?
    In case you make any repayment(s) during the moratorium period after availing the moratorium benefit, then such repayments will be adjusted against any overdues or considered as advance payment for future dues.
  9. Will I be charged penal charges or penal interest for availing the moratorium benefit?
    No, the Bank would not charge any penal charges or penal interest for availing the moratorium benefit during the moratorium period. The Bank only will accrue the interest as per the loan contract rate during this period. However, in case the borrower does not pay such accrued interest as and when the same becomes due, then penal charges or penal interest would be applicable.
  10. How to opt-in for the Moratorium Scheme for credit card?
    An SMS will be sent by the Bank to Cardmembers registered mobile number with a request to ‘OPT IN’ for the scheme. Cardmember will have to click on the link in the SMS and opt-in for the scheme, preferably on or before April 15, 2020Participation in the moratorium scheme is entirely voluntary and it is understood, that the participation by the Cardmember/s shall be deemed to have been made on a voluntary basis.
  11. If I opt-in for the moratorium scheme, when do I have to make my final payment post the scheme?
    All Credit Card members, who have opted-in for Moratorium Scheme on Credit Card payment are required to make payment (equal to or more than minimum amount due) as per payment due date on or after June 1, 2020 as per the Credit Card statement.
  12. Will I be charged interest on my Credit Card outstanding, when I make payment after the moratorium scheme and if yes, how much?
    Your Credit Card will continue to accrue interest as per interest rate applicable on your Credit Card (please refer to Most Important Terms and Conditions – MITC available on www.yesbank.in for charges as applicable) and will be payable on the due date at the end of the moratorium period.
  13. Will I be charged any Late Payment Fee for non-payment of due during the moratorium period?
    For Cardmembers availing the moratorium scheme on their Credit Card, late payment charges will not be levied.
  14. I have an existing EMI facility on the Credit Card? What happens to that if I choose to avail the moratorium benefit?
    EMI Plans if any, in the customer account would continue to get posted during the moratorium period as per amortization schedule. However, the payment for the same can be made on the due date at the end of the moratorium period.
  15. I have set an auto debit for my Credit Card for payment. Will the Bank use Auto Debit during moratorium period?
    For all Cardmembers availing the moratorium scheme, auto debit will not be triggered during the moratorium period. However, auto debit facility will resume at the end of the moratorium period.
  16. Can I avail EMI on call or Quick Loan after I opt for moratorium Scheme?
    Cardmembers who have opted in for moratorium scheme will not be allowed to apply for Quick Loan or convert transactions into EMI on call.

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