Circulars

Cir No. 35/ C-2 /20

TO ALL MEMBERS OF THE ASSOCIATION :

SUBJECT: – DRAFT REQUEST LETTER FOR AVAILING OF MORATORIUM ON TERM LOAN & EMI INSTALMENT PAYMENTS

As you are aware, the Association has been requesting the Government of India for an economic package to help the industry during the Corona lockdown.

We are happy to inform the Members that the Reserve Bank of India (RBI) has permitted Banks to sanction a 3-month MORATORIUM and deferment of Instalments of all term loans. The Banks can allow a 3-month MORATORIUM on payment of all term loans, like Home Loans, Car Loans, Business Loans, etc. outstanding on 1st March 2020 including Credit Cards. This decision applies to all regional, rural banks, co-operative banks, NBFCs including Housing Finance Companies.

RBI also sanctioned a 3 month MORATORIUM on EMI payments for which individual Banks will have to allow the suspension of EMI. The Borrower will have to request the Bank individually and convince that his or her income has been impacted by the Coronavirus disruption.

RBI also clarifies that this relief is not a waiver but a deferment and will not impact the individual’s credit score. However you will have to pay the EMI at a later date as decided by the Bank.

We give below a draft letter to be addressed to your Bank individually for deferment of EMI for their consideration.

“Dear Sir/Madam

We are enjoying Credit Facility with your Bank viz. Loan A/c # However Due to nationwide lockdown and spread of COVID – 19 it has become difficult to continue regular and routine business activities therefore we request you to grant us a three months MORATORIUM period in our loan tenure starting from the EMI due in April and for the month of May and June. We will start paying the EMIs July onwards as usual and undertake to pay the 3 months MORATORIUM EMIs through an extended Tenure by three more months.

We would be highly obliged if you consider the same as per the recent Government / RBI Announcements.

Please confirm the above. We assure regular loan payments as we have been doing in the past and appreciate your support to us for fighting the crisis the pandemic has created

Regards”

THIS IS GENERAL INFORMATION AS AVAILABLE THROUGH MEDIA BRIEFINGS. PLEASE CHECK DETAILED GUIDELINES WITH YOUR RESPECTIVE BANKS.

This is for your kind information and doing the needful in the matter.

Thanking you.

Yours truly,