Reserve Bank of India has allowed Banks to declare a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities.
Reserve Bank of India has announced certain regulatory measures 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. It was felt that there may be a temporary disruption in the cash flows, and in some cases loss of income, for the businesses/ individuals and the present measures work to bring relief to those businesses / individuals.
The RBI in a circular issued later clarified the following: Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period. Deferred installments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) Equated Monthly installments; (iv) credit card dues.
If some one wish to avail this 3 months moratorium in payment of EMIs need to submit signed application form to the banker. If some one looking for SBI format to submit they can 06042020-EMI Deferment- Request Application (1)
