idbi bank Housing Loan, Loan Against Property, Auto Loan, Education Loan & Personal Loan

Housing Loan, Loan Against Property, Auto Loan, Education Loan & Personal Loan

This scheme is intended for borrowers to mitigate the burden of debt servicing brought about by disruptions on account of Covid-19 pandemic and to ensure the continuity of viable businesses. There may be a temporary disruption in the Cash Flows, and in some cases loss of income, for the businesses/ individuals, the Scheme will bring relief to such borrowers. All those borrowers who have regular stream of cash flow should opt for continuation of the regular EMI.

    • What is the relief RBI has provided for retail loan under COVID 19- regulatory package ?

RBI has permitted Bank to grant a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020. Hence Bank will not raise the instalment demand during this period and Borrowers availing this concession are not required to pay the Instalment during the period. Accordingly the residual tenor of repayment schedule will be extended by three months.

    • What is the process to be followed for getting the benefit of instalment moratorium?

The scheme will be applicable to all standard term loans under Housing Loan, Loan against Property, Auto Loan, Education Loan & Personal Loan as on March 1, 2020. Wherever the March 2020 instalment has already paid by the borrower, the relief would be applicable for the EMI payable in April 2020 and May 2020.

 

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    • Since the instalments are not to be paid, how will the loan be adjusted?

Moratorium of three months on payment of EMI instalments falling due between March 1, 2020 and May 31, 2020 will be offered.  During the said moratorium period, Interest shall continue to accrue on the outstanding portion of the term loan. The Interest accrued during period of moratorium will be added to the outstanding loan amount at the end of the moratorium period and the repayment schedule for such loans will be reframed. Accordingly, the residual tenor will be shifted by three months.

    • What will happen after the relief period /moratorium is completed?

Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period and will be added in the loan amount outstanding which will result in marginal enhancement in balance reframed EMIs. The repayment schedule for such loans will be reframed and accordingly, the residual tenor, will be shifted by three months.

This will result in increased EMI and increased tenor of the loan. Please find below an illustration for loan
of Rs.20 lakh outstanding as on April 1, 2020 @8.25% p.a.

Illustration of Rs.20 Lakh loan @8.25% p.a
Existing EMI instalments remaining in months
(A)
Existing
Terminal date
(B)
Present EMI
(C)
Moratorium period in months
(D)
New Terminal date of loan repayment
(B+D)
New residual tenure (A+D)
New EMI
(E)
Additional interest per month F=(E-C)
Additional interest one will pay over entire tenure of loan
(F*A)
36
Mar-23
17,041
3
Jun-23
39
17,397
356
12,816
60
Mar-25
17,041
3
Jun-25
63
17,395
354
21,240
120
Mar-30
17,041
3
Jun-30
123
17,394
353
42,360
180
Mar-35
17,041
3
Jun-35
183
17,393
352
63,360
240
Mar-40
17,041
3
Jun-40
243
17,393
352
84,480
    • Does this moratorium period affect my Credit rating?

No, provided the loan repayment is satisfactory up to February 29, 2020.

    • What will happen to the accounts which are delinquent/ in default/overdue on or before 1st March 2020?

Since the relief is extended for instalments of loan which are due only between 1st March 2020 to 31st May 2020, the instalments/other amount overdue on or before 29th February 2020 in any of the loan account will have to be paid, in order to avoid down-gradation of account and slippage in credit rating. Please note non-payment of dues up to February 2020 may result in down gradation of account by April 2020.

    • What if my cash flow is not impacted on account of Covid-19 and hence  I  do not intend  to avail moratorium and want to continue to make the EMI Payment as in past ?

Customer may opt out from EMI moratorium by writing email to moratorium@idbi.co.in latest by April 15, 2020.
The E-mail should mention the following details

        • Email Subject should be Loan Account number
        • In the E-mail body please mention the following details
          • Name of the borrower.
          • Loan account number.
          • Customer to mention in the email that “I wish to opt out from the instalment moratorium facility offered by the bank, hence kindly continue with existing repayment schedule and deposit my EMI by way of ECS/SI”
          • The request received in prescribed format will only be considered for consideration of the moratorium Opt-out Facility.

 

    • What will be the Last date for opting out of the moratorium relief scheme ?

The last date for opting out of the moratorium relief scheme is April 15, 2020. The borrowers need to send email for opting out from EMI moratorium to moratorium@idbi.co.in latest by April 15, 2020.

    • Can the borrower pay during  the moratorium period?

The borrowers who have availed the moratorium relief can continue to make the payment during the relief period, the same would be considered as prepayment in the loan account. For making such payments kindly contact the nearest Branch /Retail Asset Center.

    • Will the Scheme be applicable to term loans availed after March 1, 2020?

The loan account disbursed after March 1, 2020 will not be covered under the Scheme.

    • Will there be any late payment charges or additional interest charge during the moratorium period on the instalment not paid ?

Bank will not be levying any charges of late payment or additional interest during the moratorium period for account granted with moratorium relief.

  • Will the moratorium period be considered in Education Loan where moratorium as per scheme is already availed?
  • Moratorium relief will not be applicable where the loan is currently under moratorium provided under the scheme without any obligation to pay interest.
  • Education loan cases where borrower has opted for interest payment during moratorium the moratorium relief will be provided on the interest payment during the period.
  • Education loan cases where EMI has already commenced the moratorium relief will be available on the instalments payable during 1st March 2020 to 31st May 2020.
Updated: 24 August, 2021 — 2:45 PM

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