SBI Notifies Extension In Loan Moratorium; Eases Process To Avail It

After RBI in an off-cycle monetary policy meet announced extension of loan moratorium for another 3 months in the wake of extended nationwide lockdown till August 31, 2020, banks have begun to notify their customers and probably first to do so is the country's state run lender SBI.

SBI Notifies Extension In Loan Moratorium; Eases Process To Avail It

Also, the bank has eased the process of applying for the extended loan moratorium on term loans. Moratorium is a facility wherein borrowers are not required to service the debt against loans.

In a statement, the bank said, "For this, the Bank has simplified the process of stopping the EMIs by initiating an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs. The borrowers have to reply with a YES to a designated virtual mobile number (VMN) mentioned in the SMS sent by the Bank within 5 days of receiving the SMS, if they wish to defer the EMIs.

So customers just via sending a confirmation saying Yes on a designated virtual mobile number can stop the payment of EMIs falling due in June, July and August.

This extension is likely to ease some liquidity burden of borrowers at a time when business activity has been hit heavily due to coronavirus led lockdown.

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