HDFC Bank will also be offering it's customers EMI moratorium and credit card outstanding moratorium facility as per RBI guidelines on providing financial relief during the COVID-19 period.
To help customers, the private lender has answered various frequently answered questions (FAQs). Unlike SBI and ICICI Bank, credit card customers of HDFC Bank need not write to their bank to avail moratorium on their credit card payments. If one skips payments for the month of April, it will be assumed that you want the moratorium till May 2020.
If you are also a customer of the bank, here's all you need to know about the Loan EMI or credit card outstanding moratorium:
EMI moratorium period
3 months moratorium on EMI payments falling due between 1 March to 31 May 2020, as directed by RBI.
Who is eligible?
- All HDFC Bank customers who have availed of retail instalment loans or any other retail credit facilities prior to 1 March 2020 are eligible.
- Customers having overdues prior to 1 March 2020 may also opt for the moratorium, and their requests shall be considered by the bank based on its merits.
- All Agri Loans (Kisan Gold Card) and Microfinance customers under the Bank's Sustainable Livelihood Initiative are eligible.
- All Corporate, as well as SME customers, are eligible.
What happens on choosing EMI Moratorium?
- Bank will not ask for any EMI Payment till 31 May 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 March 2020 has been paid and a moratorium for April and May 2020 has been availed, then the loan tenure will be extended by 2 months.
If you do not want the EMI moratorium, what should you do?
No further action is required from your side. HDFC Bank will continue with your repayment instructions.
"We encourage customers with adequate funds to continue paying during this period to avoid the extra interest charges and tenor extension. However, if you skip your EMI payment during this period, it is understood that you require EMI moratorium till May 2020," HDFC Bank said.
"Opting for the Moratorium is entirely the customers' choice. We understand that all our customers may not opt for the Moratorium given that there is an additional levy of interest payable under the terms of the Moratorium," it added.
If you have already paid EMIs and would like to avail the moratorium till 31 May 2020:
You can avail of the moratorium benefits for the unpaid EMIs by applying for the moratorium (process explained below). Further, HDFC Bank says on its website, "If you wish to opt for the Moratorium, we would be happy to refund the EMI debited and register your Loan account under the Moratorium process."
Charges on availing EMI moratorium
If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.
Examples from HDFC Bank on the charges:
- Auto Loan: Loan amount Rs. 8 Lacs, remaining tenor 36M, Last EMI on 7-Feb-23, opting for 3 months Moratorium i.e. Mar-20, Apr-20 & May-20 EMI. The additional interest would be about Rs. 25,500/-, and the resultant tenor would increase by four months, and the last EMI including the interest recovery would be on 7-Jun-23.
- Salaried Personal Loan: Loan amount Rs. 4 Lacs, remaining tenor 48M, Last EMI on 4-Mar-24, opting for 2 months Moratorium i.e. Apr-20, May 20 EMIs. The additional interest would be about Rs. 15,000/-, and the resultant tenor would increase by 1.4 EMI, and the last instalment (40% of regular EMI) would be on 4-Jul-24.
How to apply for HDFC Bank EMI moratorium?
You will have to provide your consent to the bank:
- Call on one of these numbers (022-50042333, 022-50042211) from your bank registered number and follow the instructions
- Submit this online application on HDFC Bank's website.
Note: Keep your loan account number handy before you start the process.
Can you opt for a moratorium on more than one loan from HDFC Bank (Eg. Personal Loan & Car Loan)?
Yes. Please remember that additional interest for the EMI moratorium period will be applicable for each loan separately.
Credit Card Outstanding and Credit Card Loan Moratorium
Does this moratorium apply for Credit Card outstanding and Loans on HDFC Bank Credit Cards?
- Yes, the moratorium is available on Credit Card outstanding and Loans availed on Credit Cards for payments due from 1 Mar 2020 till 31 May 2020.
- The moratorium is available on HDFC Bank Credit Cards (Retail & Corporate) and Loans (Insta Loan / Smart EMI / Balance Transfer on EMI / Insta Jumbo Loan) availed on Credit Cards for payments due from 1 March 2020 till 31 May 2020. The moratorium allows you to defer the payment till 31 May 2020.
- You are required to pay the minimum amount due or total outstanding and accrued interest charges on the due date after 31 May 2020.
- All retail credit card customers will be deemed eligible for the moratorium if they are regular with their payments on or before 1 March 2020 on their credit card outstanding and loans taken on the credit card.
- The moratorium is applicable for credit facilities availed in India.
How to avail the HDFC Bank credit card moratorium?
- Customers who were regular in their payments on or before 1 March 2020 and could not make any payments (NIL payment) from 1 March 2020 to 31 May 2020 will be automatically made eligible for the moratorium. Customers need not call HDFC Bank or send any email / SMS confirmations to avail moratorium benefits on credit cards.
- Credit card customers with active Autopay option can use NetBanking/MobileBanking to switch off their payments to avail the moratorium.
- One can do so by logging into Netbanking > 'Cards' Tab > select "Request" option on the left-hand side menu under Credit Cards > Select Autopay De-Registration.
- It can also be done by logging into MobileBanking > Menu > 'Cards' under "Pay" > Select your Credit Card > Click Autopay 'Change" option.
Will interest be levied for the moratorium period on my credit card outstanding and loan on credit cards?
Yes, interest will be levied as per the contracted rate on the card. Opting for 3 months moratorium allows you to defer the payment of your credit card dues and loan instalments on credit cards till 31 May 2020.
"Kindly note that the moratorium is a deferment of payment and not a waiver of interest. You are required to pay the minimum amount due or total outstanding along with accrued interest charges on the due date after 31st May 2020," HDFC Bank notified its customers.
If you have made full payment in March 2020 and want to avail moratorium now:
You may defer payments for the remaining period of the moratorium by making NIL payment on the next outstanding and your credit card will be automatically be considered for the moratorium for April and May 2020.
If you have availed moratorium on Credit Card with HDFC Bank, does the same apply for loans taken on Credit Card?
Yes. Along with Credit Card outstanding, loans taken as part of the Credit Card (Insta Loan, Smart EMI, Balance Transfer EMI) will also be automatically considered part of the moratorium.
For your Jumbo Loan, if you do not make the EMI payment, during the moratorium period, the Jumbo Loan will be considered as part of the moratorium.
Please note, that your EMIs will be deferred when you avail moratorium. For Example: If you are unable to make payment for the month of April 2020, then your EMI for April & May 2020 will be deferred to June and July 2020 respectively. Your loan tenor will be extended accordingly by 2 months.
It is important to remember that interest will be levied on the outstanding amount for the moratorium period as per the contracted rate of interest agreed at the time of Loan booking.
If you do not want the moratorium on your HDFC Bank Credit Card/ Credit Card Loans. What should you do?
- If you continue to make payments on your Credit Card, as per the statement balance, on or before the due dates, then your credit card outstanding & loans taken on the credit card will be not considered as part of the moratorium.
- If you have availed the moratorium on your Credit Card outstanding, you will not be able to opt-out of the moratorium for only the loans taken within your Credit Card (except Jumbo Loan).
- For your Jumbo Loan account, if you continue to make payments as per the statement balance on or before the due date, then the Jumbo Loan will not be considered part of the moratorium.
Customer's obligation after the completion of the moratorium:
HDFC Bank Customers are expected to make at least the Minimum Amount or the Total Amount Due payments including the interest for the moratorium period on the next due date immediately after the 31 May 2020.
Opting for the EMI moratorium will not affect your Credit Rating or Score.