In excellent news to customers who receive EMI payment notifications at the beginning of the month, State Bank of India (SBI) has decided to defer that payment of installments and interest/EMIs on Term Loans due between March 1 and will 31 for 3 months.
The decision is in line with RBI’s relief package announced on Friday that asked all banks to provide its customers a three-month moratorium for on term loans. during the lockdown period.
SBI made the announcement through its official Twitter handle.
“In terms of RBI COVID19 regulatory package, SBI has initiated steps to defer the installments and interest/EMIs on Term Loans falling due between 01.03.2020 and 31.05.2020 and extended the repayment period by 3 months. The interest on assets facilities for the amount 01.03.2020 and 31.05.2020 is additionally deferred to 30.6.2020,” it wrote on Twitter
— State Bank of India (@TheOfficialSBI) March 31, 2020
Along with SBI, several banks sent tweets to inform their customers that they have deferred the payment of EMIs on term loans whose instalments are due between March 1 and up to May 31 by three months.
On March 27, the Reserve Bank of India permitted all banks and lending institutions to allow a 3-month moratorium on all loans. “All lending institutions are allowed to defer interest on working capital repayments by three months. The moratorium on term loans, deferment of interest payment will not result in asset classification downgrade and banks may reassess the working capital cycle. It will not be treated as NPA,” the RBI Governor had said.