FAQ regarding Moratorium and How it works
- What is the EMI moratorium provided for loans under COVID 19 - regulatory package?
The prevailing situation may pose a huge challenge for people at large. As a measure of solidarity, RBI has permitted all Indian Banks / Indian Financial Institutions to offer it’s customers up to 3 months moratorium on their EMI payments falling due between Mar 1st, 2020 to May 31st, 2020.
- What will happen if I choose the EMI Moratorium?
If you choose EMI moratorium,
- We will not ask for any EMI Payment till May 31st 2020.
- Interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan.
- The loan tenure will get extended by the corresponding period for which the moratorium has been availed.
(For example, Those who have paid 1st March,2020 instalment can avail benefit from 1st April,2020 and those who want to pay till April, 2020 can take benefit from 1st May 2020, by requesting in writing. So, April,2020 benefit will extend till June,2020 and May,2020 benefit will continue till July 2020. Those who have not paid March,2020 instalment can take benefit from March,2020 which will extend till May,2020.)
- If I do not want the EMI moratorium, what should I do?
If you do not want the EMI moratorium, no further action is required from your side. We will continue to bank your repayment instructions.
We encourage customers with adequate funds to continue paying during this period to avoid the extra interest charges and tenor extension. However, if you skip your EMI payment during this period, it is understood that you require EMI moratorium till May 2020.
- What charges will I pay, if I avail of this EMI moratorium?
If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.
- What if I have already paid my EMIs and would like to avail the moratorium till 31st May 2020 ?
You can avail of the moratorium benefits for the unpaid EMIs. Please follow the process given above for availing the moratorium.
- Does the moratorium affect my Credit Rating?
No, Opting for the EMI moratorium will not affect your Credit Rating or Score.
- How do I get this EMI moratorium?
You will have to provide your consent to the Us.
We support you during this difficult time caused by COVID-19 and wish you all the very best.
With Warm Regards
Team Staragri Finance