Amid the widespread losses due to COVID-19 pandemic, Reserve Bank of India (RBI) has directed all lending institutions to allow a three-month moratorium on all term loan EMIs and credit card dues. In line with this RBI direction, Bajaj Finserv is also offering a moratorium on personal loan EMIs to the eligible customers. This means that you are legally allowed to postpone the payment of your loan EMIs with due dates falling between 1st March, 2020 and 31st May, 2020. Please note that no penalty or late fees will charged for delay in EMI payment during the moratorium period (if opted by the borrower), however, interest will keep on accruing at the contracted rate.
COVID-19 Relief Measures by Bajaj Finserv
In view of the temporary disruptions in cash flow due to the pandemic, Bajaj Finserv has announced a moratorium on all personal loan EMIs to ease the financial burden on its customers. It should be noted that the moratorium is optional and you can continue to pay the EMIs on the designated due dates to avoid paying additional interest later on.
a). If you don’t want to defer the EMI payment of Bajaj Finserv personal loan, then you should continue paying the EMIs as you normally do. No additional step needs to be taken in this case.
b). If you want to defer the EMI payment of Bajaj Finserv personal loan, then you should first ensure that you meet the eligibility criteria. Next you should raise a request by clicking the link given on the NBFC’s website or by sending an e-mail requesting moratorium in the prescribed format. For your convenience, we have discussed both the eligibility criteria and step-by-step procedure for Bajaj Finserv loan moratorium in the later sections of this article.
c). If you want a refund of the EMI already paid for your Bajaj Finserv personal loan, then you should raise the request for the moratorium within 5 days of the date of EMI debit from your account. Subsequently, a refund for the EMI will be initiated and processed within 10 working days from the date of receipt of such a request.
Eligibility for Personal Loan EMI Moratorium
Please note that not everyone can apply for a moratorium on Bajaj Finserv personal loan. As per the NBFC, you should meet the following eligibility criteria:
- You should not have more than 2 EMIs due for any loan with Bajaj Finserv;
- Your loan should have been sanctioned and availed before 1st March, 2020. In other words, moratorium will not be offered on loans sanctioned after this date and any delay in EMI payment will be reported to credit bureaus and hence affect your credit score.
Illustration: What will be the Effect of Moratorium?
The following is an illustrative example of how opting for the moratorium will impact your personal loan interest payout.
For example suppose you took a personal loan from Bajaj Finserv. The principal outstanding at the time of opting for the moratorium is Rs. 12 lakh at an interest rate of 15% per annum with a residual tenure of 36 months. Let’s see how the moratorium will affect your EMIs.
a). If you do not opt for the moratorium:
|Total interest payable for the residual tenure of 36 months||Rs. 2.97 lakh|
|Total amount to be paid (Principal + Interest)||Rs. 14.97 lakh|
b). If you opt for the moratorium:
|Extra interest accrued over the moratorium period of 3 months*||Rs. 45,565|
|Interest payable over the residual tenure of 3 years**||Rs. 2.97 lakh|
|Total amount to be paid (Principal + Interest + Moratorium period interest)||Rs. 15.43 lakh|
* Extra interest incurred during the moratorium period of 3 months = Rs. 15,000 (Month 1 interest) + Rs. 15,187.50 (Month 2 interest) + Rs. 15,377.50 (Month 3 interest) = Rs. 45,565
**As a result of the moratorium, your loan tenure will be extended by three months and you still have to pay the interest incurred for the original 3 year residual tenure of the loan = Rs. 2.97 lakh.
NOTE: The above calculation is an illustrative example and the actual interest payable may vary from lender to lender.
How to Apply For Bajaj Finserv Loan Moratorium?
Following is the step-by-step procedure to apply for a moratorium on your Bajaj Finserv personal loan.
Step 1: Visit the customer login page of Bajaj Finserv. Enter your customer ID/ Email ID/ Mobile number and the OTP received to log into the online banking portal.
Step 2: Go to the “Raise A Request” section and click on “COVID-19” from the drop down menu. Enter your loan account details and carefully read the terms and conditions.
Step 3: If you agree with the terms and conditions, click “Submit” to complete the process.
Alternatively, you can write an e-mail to firstname.lastname@example.org with your loan account details and reason for requesting the moratorium.
NOTE: You should place the request for moratorium before the EMI amount gets debited from your account. However if your EMI has been already debited, then the request should be placed within 5 days of the debit if you want a refund.
How to Check the Status of Moratorium Request?
Please note that submitting a request does not guarantee the EMI moratorium of your Bajaj Finserv personal loan. Bajaj Finserv will communicate its decision via an e-mail/call/SMS along with the details of the accrued interest during the moratorium period. Please note that the NBFC will also inform you about the terms and conditions, so that you can take an informed decision with respect to the deferment of the EMIs for the months of March, April and May 2020.
Also read Bajaj Finserv Personal Loan Status.
How Does Loan EMI Moratorium Work?
The moratorium basically means that you are being allowed some extra time to pay your personal loan EMIs. While the principal component of your personal loan will remain unchanged during the moratorium period, the interest will keep on accumulating at the contract Bajaj Finserv personal loan interest rate. As a result, you will have to pay greater interest if you opt for the moratorium, as shown in the above example. Moreover, your repayment tenure for the personal loan will increase as the moratorium interest will be added to the regular interest and the principal outstanding.
Some Important Related Terms
What will happen if you have subscribed for auto-debit payment options for your Bajaj Finserv personal loan EMIs? In such a case, EMIs will not be deducted during the applicable period if you have availed the moratorium.
Let’s briefly look at the various modes of auto debit available for making Bajaj Finserv personal loan EMI payment.
- Standing Instruction: This means that you permit the lender to automatically deduct the EMI amount from your bank account on the stipulated due dates. You can opt for this method via filling out a form to activate the SI (standing instruction) mandate.
- National Automated Clearing House (NACH): It refers to an online funds transfer platform that allows you to pay the personal loan EMIs from your account with any bank on the respective due dates.
NOTE: You may need to fill out and submit a new NACH mandate to Bajaj Finserv in case you opt for the moratorium.
Frequently Asked Questions (FAQs)
Q1. Will the moratorium affect my credit score?
No, the delay in EMI payment during the moratorium period will not affect your credit score, if you have availed a moratorium on your Bajaj Finserv personal loan.
Q2. Should I pay or defer?
You should continue to pay your personal loan EMIs, if possible as the payment is only being deferred and not waived off. Hence, interest will keep on accruing during the moratorium period resulting in a greater interest payout later.
Q3. What should I do, If I do not want the EMI moratorium?
You need not take any action whatsoever, if you do not want the loan moratorium. You can continue to make the EMI payment on the designated due dates.
Q4. For which months’ EMI, can I avail the moratorium?
You can avail the moratorium for the loan EMIs due dates falling between 1st March, 2020 and 31st May, 2020.
Q5. What are the charges that I need to pay, if I avail this EMI moratorium?
No additional fees/ penalty will be charged for the delay in EMI payment during the moratorium period. However, interest will be charged at the applicable rate during this moratorium period.
Q6. Can borrowers whose loans were declared NPA before the 1st of March apply for loan moratorium?
While borrowers are allowed to apply for a loan moratorium even if their loans had turned delinquent before the 1st of March, whether to grant the request will be decided by Bajaj Finserv on a case by case basis.