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Customers in worry as private and public banks differ in terms of EMI on loans

As per the latest news, it has been known that RBI three-month loan repayment might not work in the same way for all the banks.

The customers of some bank might have to opt in for relief for moratorium while others customers would be automatically eligible for the same.

So, according to the directive that has been given by bank on 27th March, different bank differs in terms of their polices.

State Bank of India recently tweeted that “ As per the RBI Covid-19 regulatory package, SBI has decided to hold the interest/EMIs and instalments that is falling between 1 March 2020 to 31st May 2020 and the repayment period would be further extended for three months” 

Some of the other state holding banks, such as Punjab National bank, Bank of Baroda and Canara Bank have informed the customers in terms of the moratorium. In addition, some of them has also come up with detailed FAQs for the clarity purpose.

Banks such as Canara Bank and SMI have decided on ‘ opt-in route’ for the customers who want to use the moratorium. On the other hand, IDBI Bank has decided upon ‘ opt-out route’ where the customers who are not looking out for moratorium would email the bank for the same latest by 3rd April.

But, there are also some financial institutions who have been asking for EMI for the loans taken by the customers or perhaps charging penalty for the same. We would like to explain this by example:-

A person named Rakesh took a two wheeler on loan before lockdown. However, he still got messages to pay his EMI.

Here is the message he received :-

Your Bajaj bike current EMI bounce Rs +2,546.00; Pay at Paytm Online www.bajajautofinance.com pls call on 8149423754 , 9607016562

Another person named Harmanjeet Singh purchased an iPhone but he was asked to pay EMI by the organization Home credit.

SBI has told its customers that if they don’t wish to use the moratorium, then no action might be needed from there side as monthly EMI would get deducted automatically from their accounts. However, if someone is looking for a moratorium, then bank application needs to be sent through email.

Additionally, for all the banks, if a person is looking to use the moratorium, then the loan tenure might get extended for about three months as compared to the original repayment tenure.

So, the customers might get immediate relief but later on the bank would recover the cost once the moratorium is finished. But, you should be aware of the face that it could led to increase in EMI or perhaps the loan tenure.

Borrowers would have to further get in touch with their banks for the repayment schedule through which revised EMIs would be showcased.

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