Non-banking financial companies (NBFCs) have started intimating customers about loan repayment moratoriums, as directed by Reserve Bank of India due to the impact of the COVID-19 pandemic.
Cholamandalam Investment and Finance Company Limited (Chola), part of Murugappa Group said customers must submit a request to avail of the moratorium. Customers who have already paid their March 2020 instalments will not be able to avail moratorium for March 2020 but can do so for April and May 2020, it said.
The repayment schedule for such loans where the moratorium is provided, the tenure would be extended by up to three months. However, interest shall continue to accrue on the outstanding portion of the term loans during the moratorium. The interest of the deferred period will be payable after the moratorium period, the company said.
New loans sanctioned after March 1, 2020 are not covered under the RBI circular. However, the company may, at its own discretion, extend the benefit to such borrowers wherein the loan instalments are falling due between March 1, 2020 and May 31, 2020, it added.
Repco Home Finance said the borrowers have to communicate their consent for the moratorium by clicking a button on the website or in writing or by e-mail latest by April 8. Non communication or delayed communication shall be treated by default as acceptance of deferment by that particular borrower, it said. Many borrowers have already paid instalments for the month of March 2020. Such borrowers shall be granted deferment for the month of April and May 2020 only, subject to the consent of the borrowers, Repco Home Finance said.
Sundaram Finance said it has initiated a series of SMS communications with customers and they have to take appropriate action for availing of the moratorium.
Bajaj Finserv said the interest will continue to be charged on the outstanding loan amount during the period of moratorium as well as the extended tenor of loan. While EMI amount will remain same, the amount of interest cost on the loan will increase due to the extension of the remaining tenor of your loan, it said. The company also said that to become eligible for the moratorium, customers should have no more than 2 EMIs due in any of their loans and should have a consistent payment record.
