To grant relief amid coronavirus led lockdowns in the country, RBI on March 27 allowed financial institutions including banks, NBFCs and HFCs to offer 3-month moratorium on all fixed term loans as well as credit card dues outstanding as on March 1, 2020. As per the RBI, under the moratorium deferred installments would cover:
(i) principal and/or interest components
(ii) bullet repayments
(iv) Credit card dues falling due between March 1, 2020 and May 31, 2020
After the provision has been allowed by the RBI, various banks have come up with their bank-specific processes to avail of the EMI holiday. Here are the details on ICICI Bank's EMI moratorium facility:
Based on the details published on the bank's site:
EMI loan moratorium by ICICI Bank has been extended to the following:
Borrower(s)/ customer(s) of some loans or credit facilities :
i) Kisan Credit card (KCC)
ii) Self-Help Group (SHG)/Joint Lending Group (JLG)/Loans given through Business Correspondent (BC)
iii) Farm Equipment (FE)
iv) Jewel Loan
v) Corporate Farmer Finance
vi) Business Lending -Unsecured (Current Account Over Draft/Small Business Loan/Roaming Protect/Loan Against Credit Card Receivable
vii) Working Capital/Trade Advance to Auto Dealers
viii) Commercial Business, Working Capital/Trade Advance to Commercial Business customers
ix) Consumer Finance
x) Two Wheeler Loans
xi) Dealer Funding
1. How to Avail the Moratorium Facility of ICICI Bank?
In respect of the credit facility availed, ICICI Bank customer or borrower can opt-in or opt-out from the RBI mandated moratorium by clicking on the link shared with the borrower(s) /customer(s) by the Bank through (i) SMS or (ii) e-mail. He or she may also visit ICICI Bank's website www.icicibank.com failing which it will be considered that borrower has opted for the relief under moratorium.
2. How can Moratorium on Multiple Credit Facilities be Availed?
In case of multiple credit facilities from the bank, the option of moratorium will have to be chosen separately for each credit facility.
3. How will Interest be charged for Deferred EMIs on Term Loans?
The interest accrued would be clubbed with the principal component, resulting in increase in loan tenure. In cases where the loan tenure cannot be increased, the relief would result in increase in the EMI amount.
4. How will Interest be charged for Cash Credit/ Overdraft Facilities?
Post the end of the moratorium period, accrued interest will become due and payable immediately i.e. in June 2020. The postponed interest (funded interest) i.e. for the period of the EMI holiday shall attract interest at the rate applicable on the credit facility and the underlying security shall continue to secure the funded interest.
5. Will there be Late Payment Charges or Default Interest or Additional Interest for Deferred EMI?
No late payment charges/ default interest/ additional interest shall be levied during the moratorium period.
6. Can the Tenure under Covid 19 regulation be extended in a case if customer has availed moratorium on Education Loan?
The respite as per Covid regulation is for repayments becoming due between March 1, 2020 and May 31, 2020 and since for such customers repayments shall become due in future course, the term under Covid 19 regulation shall not be extended.
For further details please refer to the FAQs on Covid 19- Regulatory package listed by the bank here.