Credit card dues, EMIs included; interest to accrue on outstanding portion of loan
Are your credit card payments deferred? Here's what the RBI has to say
Responding to public queries with respect to announcements made earlier in the day, the Reserve Bank of India (RBI) said all lending institutions are permitted to grant a moratorium of three months on payments of all installments on term loans, including credit cards.
The only caveat: These loan payments must fall between between March 1, 2020, and May 30, 2020.
These installments, the central bank clarified, will include payments of principal and/or interest components, bullet repayments, equated monthly installments (EMIs) and credit card dues for the said period.
"The repayment schedule for such loans as also the residual tenor, will be shifted across the board by three months after the moratorium period.
Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period," the RBI noted in a detailed circular dated March 27.
The deferment is being offered to borrowers to enable them to tide over the economic fallout of the COVID-19 outbreak.
The RBI also noted that wherever the exposure of a lending institution (commercial banks, including regional rural banks, small finance banks and local area banks, co-operative banks, all-India Financial Institutions, and NBFCs, including housing finance companies) to a borrower is Rs 5 crore or above as on March 1, 2020, the bank shall develop an MIS on the reliefs provided to its borrowers which shall inter alia include borrower-wise and credit-facility wise information regarding the nature and amount of relief granted.
Meanwhile, for working capital facilities, lending institutions are permitted to defer the recovery of interest applied during the period from March 1, 2020, up to May 31, 2020 ("deferment").
The accumulated accrued interest shall be recovered immediately after the completion of this period in case of all such facilities, the RBI said.
Source - MONEY CONTROL