The COVID-19 pandemic has not only affected the health of many across the globe, but has also resulted in a nationwide lockdown and halt to business activities. In the view of the financial stress faced by many borrowers during the current crisis, Reserve Bank of India (RBI) has announced a relief package that allows all the lending institutions to offer a 3-month moratorium to their customers.
As a result, you are legally allowed to postpone the payment of your Indiabulls personal loan EMIs with due dates falling between 1st March, 2020 and 31st May, 2020. While no late payment charges will be levied in such a case, the interest will keep on accruing at the contracted rate during this moratorium period. Read this article to understand all the aspects of Indiabulls personal loan moratorium along with answers to the frequently asked questions in this regard.
COVID-19 Relief Measures by Indiabulls
Indiabulls is offering a 3-month moratorium to its customers, so that they can divert their funds towards the essential activities in this difficult situation. Such a delay in EMI payment will not harm your credit score, but will result in a higher interest payout over the personal loan tenure.
- If you want to postpone the EMI payment, then submit a moratorium request on the Indiabulls official website or write to email@example.com by May, 2020.
- If you do not want to postpone the EMI payment and want to continue paying the loan EMIs as per the scheduled due dates, you do not need to take any additional steps. In case you have summited ECS/NACH mandate or post-dated cheques, Indiabulls will continue to present the EMI mandate to recover the payment.
Eligibility for Personal Loan EMI Moratorium
As per Indiabulls guidelines, all individuals with personal loans outstanding as on 1st March, 2020 are eligible for the moratorium. However, the loan moratorium is not allowed for new loans disbursed after 1st March, 2020.
You should note that the EMIs are only being deferred and not waived off. Interest will keep on accumulating during the moratorium period, which will result in both a greater payout and an extended tenure. Thus, weigh both the pros and cons before opting for the moratorium.
What will be the Effect of Moratorium?
Let us see the effect of the 3-month moratorium on the total interest payout of your personal loan taken from Indiabulls.
For example: The outstanding balance of your Indiabulls personal loan is Rs. 15 lakh at an interest rate of 13%. The residual tenure for this ongoing loan is 18 months. Let’s see how the moratorium will affect your interest payout and the loan EMIs in the following tables.
If you do not opt for the moratorium:
|Total interest payable for the residual tenure of 1 year and 6 months|
|Rs. 1.59 lakh|
|Total amount to be paid (Principal + Interest)||Rs. 16.59 lakh|
If you opt for the moratorium:
|Extra interest accrued over the moratorium period of 3 months*||Rs. 49,280|
|Interest payable over the residual tenure of 1 year and 6 months**||Rs. 1.59 lakh|
|Total amount to be paid (Principal + Interest + Moratorium period interest)||Rs. 17.08 lakh|
* Extra interest incurred during the moratorium period of 3 months = Rs. 16,250 (Month 1 interest) + Rs. 16,426 (Month 2 interest) + Rs. 16,604 (Month 3 interest) = Rs. 49,280. You can use the personal loan moratorium interest calculator to know how much extra interest you will be required to pay by opting for the moratorium.
**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 remaining tenure of 1 year and 6 months for the loan = Rs. 1.59 lakh.
NOTE: The above calculation has been done for an illustrative purpose and the actual interest payable may vary from lender to lender.
From the above example it should be clear that there is in fact an additional interest cost if you opt for the personal loan moratorium. Also this cost can be higher than the Rs. 49,280 in our illustrative example if your outstanding loan and/or interest rate is higher.
How to Apply For Indiabulls Loan Moratorium
You can apply for the moratorium for your personal loan with Indiabulls by following one of the two methods:
Method 1: Via Email
Step 1: Ensure that you are eligible for the loan moratorium.
Step 2: Write an email to firstname.lastname@example.org requesting for the loan moratorium. Ensure that you mention your loan account number in the email and send it from your registered email ID.
Step 3: The NBFC will subsequently send you an email regarding confirmation/rejection of your deferment request as per its discretion. Preserve this email for future reference.
NOTE: In case you have multiple ongoing loans with Indiabulls and you want to avail moratorium for all of them, then you need not send multiple mails to request the moratorium. You can mention all the different loan account numbers in a single email sent from your registered mailing address.
Method 2: Via Website Link
As per this method, you can visit the loan moratorium link of Indiabulls and fill out the request form to apply for the 3-month moratorium.
Please note that in case you have any query, you can contact the Indiabulls personal loan customer care by writing to email@example.com.
Some Important Related Terms
It is important to know about the various modes of EMI payment, while applying for payment deferment. Hence, we discuss the automatic debit options for personal loan EMI payment in the following points:
- Standing Instruction (SI): Opting for this method of EMI payment means that you allow the bank to automatically debit the EMI payment from your bank account. This saves you from the hassle of remembering the due dates as well as from issuing monthly cheques.
- National Automated Clearing House (NACH): This auto debit option is useful when you don’t have a deposit account with the lender. NACH allows you to pay your personal loan EMIs from your account with any other bank on the respective due dates.
Frequently Asked Questions (FAQs)
Q1. Will not paying loan EMIs during the moratorium affect my CIBIL credit score?
Ans. No, deferment of loan EMIs during the moratorium period will not affect your CIBIL credit score.
Q2. Should I pay or defer?
Ans. We advise to make the EMI payments as per the designated due dates to save on the additional interest accrued during the moratorium period. However, if your cash flow has been severely impacted and you cannot pay the EMIs as per the scheduled dates, then you may avail the benefit of the moratorium.
Q3. What is 3 months’ loan moratorium?
Ans. The 3 months’ loan moratorium means that you are being legally allowed to postpone your personal loan EMI payments with the due dates falling between 1st March, 2020 to 31st May, 2020. The financial institution will not charge any penalty for such a delay, however, interest will keep on accumulating.
Q4. What should I do, if I do not want to opt for the loan moratorium?
Ans. You need not perform any additional action, if you do not want to avail the moratorium for your personal loan taken from Indiabulls. You can continue to make the EMI payment as per the original contracted schedule.
Q5. What charges do I need to pay to avail the personal loan moratorium?
Ans. No additional charges will be levied for availing the personal loan moratorium, however, interest will keep accruing during the moratorium period.