How to avail 3 Months Loan EMI moratorium from SBI?
RBI has asked banks and financial institutions to provide 3 months loan EMI moratorium to its customers considering Covid-19 situation. While RBI has not made it mandatory, it has left this decision to banks and financial lenders. Now banks have started announcing this relief to its customers. State Bank of India (SBI) has come up with relief details to its customer. In this article we would provide who is eligible for 3 months Loan EMI moratorium of SBI and how one can avail this facility.
What is 3 months Loan EMI moratorium?
Considering covid-19 / corona virus situation, the RBI has taken several steps to benefit Indian citizens. One of the measures was to provide relief for Loan EMI deferment for 3 months. This means that one need not pay EMI’s for 3 month period. While there are several flaws in this relief package, considering the T&C provided by banks, one can proceed and get such benefit.
Who is eligible to take 3 months loan EMI moratorium relief of SBI?
Here are the eligibility criteria for SBI customers.
1) All term loans and retail loans including home loans, consumer loans, auto loans, agricultural loans, crop loans, overdraft etc. would fall under this relief package.
2) All above specified loans that are outstanding as on 1st March, 2020 are eligible for this relief package. If you have taken loan after 1st March, you cannot avail this facility. But reach out to SBI customer support if there is any way out.
How to avail 3 Months Loan EMI moratorium from SBI?
Though SBI bank is providing this relief package, it does not mean you need to avail it. Refer my article about who can avail 3 months loan EMI deferment. If you do not wish to avail this facility, you need not take any action and pay your EMIs like you are doing every month. However you can proceed for next steps if you wish to avail this facility.
1) EMIs through NACH – If your loan EMIs are paid through National Automated Clearing System (NACH) you need to submit application (Refer Annexure-I) and NACH Extension(Annexure-II) to stop these NACH EMI installments to a specified email ID indicated in Annexure-III.
2) Standing Instructions (SI) – If your EMIs are deducted through standing instructions, you need to submit application (Annexure-I) to a specified email ID indicated in Annexure-III.
If your bank has already recovered EMI through SI / NACH / ECS / cheques, you may approach bank to get it refunded to you.
What happens after 90 days of loan EMI deferment in SBI?
The relief is for 90 days i.e. 3 months gets ended on 31st May, 2020. Some of you might avail only 2 months as Mar-20 EMIs would have been already paid.
This loan EMI deferment has been extended across the board to all SBI customers by extending repayment of Term Loan installments including interest by 90 days. The original repayment period for Term Loans will get extended by 90 days e.g. a loan repayable in 60 installments maturing on 5th April 2022 will mature on 5th July 2022.
Is the relief available for SBI credit card dues also?
Yes. SBI confirmed they are providing the relief even to credit card outstanding amounts.
1) Credit card payment delays won’t be reported to credit bureaus.
2) There would not be any penalty for not payment of minimum amount for the period of 3 months.
3) The credit card interest would be levied as usual, which is generally very high. Customers need to check this aspect before availing this.
How much it would cost more if I avail this SBI loan deferment for 3 months?
If you are availing this relief, you might get doubt whether it would really cost you high or nominal. Let us quickly check some samples. However, this would vary depending on loan amount, interest and balance tenure.
1) If you have taken a car loan for 60 months and assume that you paid 5 installments. There are balance 55 and approx. Rs 6 Lakhs outstanding then interest would be approx. Rs 18,000. Means you might pay 1.25 to 1.5 EMIs more.
2) If you have taken a home loan and an outstanding for Rs 30 Lakhs and 15 year tenure is still left, then the interest would be Rs 64,000 (8.5%) for 3 month period. We did simple math, but in reality this could be very high considering the outstanding principal and the rate of interest. Check with SBI customer support to know the exact math on this for your loan account. You might even get surprised and stop availing this facility itself.
Also Read: Do I need to use Emergency Fund now?
Annexure-I Format – You can click and visit SBI site and download this PDF
Annexure-II Format – You can click and visit SBI site and download this PDF
Annexure-III Email IDs where you need to send mail
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Suresh KP
How to avail 3 Months Loan EMI moratorium from SBI
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Sbi card moratorium kaise hota hai
Isnt there an online process. People who do not have access to printers and cannot go to the Bank either will not be able to complete this process.
Please advise.