This is how banks will let you avail 3-month loan moratorium

This is how banks will let you avail 3-month loan moratorium

Following the three-month moratorium on loan repayments announced by the Reserve Bank of India in view of the coronavirus outbreak, banks are introducing various methods for customers to avail it.

Most of the private sector lenders have decided to go for the "opt-in" option on loan repayment moratorium, putting the onus on the customer to take the initiative of informing the bank to opt for the three-month breather or not. Onmanorama compiles plans of various banks to implement this:

State Bank of India (SBI)

The largest bank in India has said that no action is required if customers wish to continue with their payments as usual. However, customers who wish to avail the RBI's moratorium or ask for a refund on instalments already paid will have to follow the instructions provided here:


The largest private sector lender said it would encourage customers with adequate funds to continue repayments to avoid the extra interest charges and tenor extension of the loan. No further action is required from your side if you do not want to avail the three-month breather. However, if you wish to avail the three months relaxation, it can be applied online on:

Kotak Mahindra Bank

It asked customers to write to an email from their registered ID to for "opting in" for the moratorium.

The Bank would be charging the interest, at the original contracted rate, for the moratorium period on the outstanding amount of loan to all those who avail the relief as provided in the RBI circular.


ICICI took a different approach, wherein it has decided to make the moratorium as "opt-in" for the loans generally availed by salaried customers, for loans taken by micro-borrowers and traders, whose cash flow may stand to get impacted, it is "opt-out".

Accordingly, joint liability group or self-help group lending, jewel lending, unsecured business loans, dealer financing, overdrafts and credit cards will be in the "opt-out" category where the borrowers will have to inform the bank if they wish to continue paying, while other term loans will be under the "opt-in" category.

Canara Bank

The bank has already introduced an SMS facility for customers. In case they do not wish to debit equated monthly instalments (EMI) from their accounts till May, borrowers can send the message ‘NO’ to the phone number 8422004008.

Bank of Baroda

State-run Bank of Baroda (BoB) said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need.

This option is for home and auto loan borrowers only, and for payment of all instalments of all term loans falling due between March 1, 2020, and May 31, 2020.

The customers will have to make a request to the bank for a refund of the amount.

The bank would refund the entire EMI amount- principal and interest, which has already been deducted, to its borrowers.

The lender will not raise any demand from its borrowers for repayment of loans during the moratorium.

For borrowers, where standing instructions to debit EMIs are there, the bank is reaching out to them, asking if they would like to suspend the standing instructions.

In case of home and car loans, they are extending the maturity of loans. So, the period of loan would be the current maturity plus three months. So, to that extent the borrower does not have to bother about these three instalments.

ESAF Small Finance Bank

No fines would be imposed on borrowers who make use of the moratorium. Customers who do not wish to utilize the moratorium can contact the nearest branch of the bank

Punjab National Bank (PNB)

PNB tweeted: "Due to COVID-19 Pandemic, instalments/ interest due for March, April, May 2020 on term loan and working capital limit stands deferred. Term loan repayment period is being extended by three months accordingly. Contact your branch for further details."

Union Bank of India

The bank's Managing Director Rajkiran Rai G said, "In case of those who have opted for ECS route for EMI deduction, customers are given the option of availing the facility by informing the branch concerned through mail or other digital medium."

Banks on its own unilaterally cannot stop ECS payment due to legal issue but the customer has the option of requesting bank to stop it, Rai said.

Axis Bank

The banks website said it is working towards implementing the scheme and added that customers will be informed about the details.