Here's how Axis Bank EMI Moratorium Scheme looks like
The EMI Moratorium scheme can be leveraged by customers of Axis Bank where in the relaxation is only in the form of deferment and not waiver.
The RBI last week announced the Covid-19 Regulatory Package where it allowed banks and non-bank lenders to defer monthly instalments for three months and it won't be considered as default and the non-payment of dues won't be reported to the credit rating agencies.
The banking regulator had asked all lenders to put in place an appropriate board approved policy to bring in the moratorium more commonly referred to as EMI moratorium scheme.
Here's how the Private Lender, Axis Bank's EMI Moratorium scheme looks like:
Axis Bank on its website explaining the scheme has stated "Customers can avail you can avail for the deferment of installments/ Interest dues for your loans/credit facilities falling due between March 1, 2020 and May 31, 2020, as well as dues for credit card statements generated between March 1, 2020 and May 31, 2020."
Customers can avail the if their cash flows are adversely impacted or they are facing financial constraints arising from Covid-19 pandemic.
The bank said, "It is only a deferment option and not a concession or waiver since interest would continue to accrue for this period. The repayment would resume from June 2020, once the deferment period is over."
Further customers who don't wish to avail the scheme and opt out will have to send a mail or reach out to any branch. It added "It is deemed that borrowers have opted for the moratorium if there's no written communication stating otherwise"
Illustrating the credit card EMI moratorium example, the bank said "Assume you make a purchase of Rs 10,000 on 12th Feb. Your credit card bill gets generated on 12th March, with total amount due of Rs 10,000 by 2nd April. If you opt for the moratorium, you will accrue total interest + GST of Rs 1,739 (assuming interest rate of 3.5% per month). The total amount of Rs 11,739 will appear in your statement on 12th June 2020."
Similarly for term loans, it explained "Ms. B has a term loan of Rs. 25 lacs at 9% rate of interest p.a., EMI of Rs 22,493 for 240 months. Her Principal outstanding after 12 months as of March 31st 2020 is Rs. 24,53,182. If she avails 2 months moratorium for the months of April 2020 and May 2020, then principal outstanding from June 2020 would be Rs. 24,89,949."
Axis Bank EMI
EMI moratorium
Axis Bank Moratorium
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