Reports emerged that the borrowers were still getting emails and messages that their EMIs are due from their lending banks. Now some PSU banks including State Bank of India, PNB, Bank of Baroda and more have decided to defer payment of EMIs on term loans.
In a sigh of relief, several public sector banks on Tuesday declared deferment of EMI payments for the next three months performing on the directions given by the Reserve Bank of India (RBI), which recently asked all institutions to allow a three-month moratorium on loans in the wake of a novel coronavirus pandemic in the country.
Last week, the RBI asked banks to allow the three-month moratorium to infuse fluidity into the system as the economic system of India grapples with coronavirus challenges. It has also asked banks for deferment of interest on working capital loans for three months (until June 2020).
Acting on the same, many PSU banks now have decided to deliver a moratorium of three months on payments of instalments and interest on term loans falling due between period of March 1 to May 31.
On the same, Bank of Baroda on its official Twitter handle tweeted, “BankofBaroda is providing a moratorium of 3 months on payment of all instalments falling due between 01.03.20 & 31.05.20 for all term loans including Corporate, MSME, Agriculture, Retail, Housing, Auto, Personal loans, etc. in pursuance of the RBI COVID-19 Regulatory Package.” Punjab National Bank also 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.”
IDBI, HDFC Bank, Union Bank of India, Canara Bank, ICICI, OBC India, Central Bank of India and more have also decided to defer payment of EMIs on term loans.