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Kotak Mahindra Bank extends EMI moratorium till August. Check eligibility, terms

A motorcyclist wearing a protective mask rides past a Kotak Mahindra Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. India's central bank Governor�Shaktikanta Das�and the chief executive officers of the nation's banks have discussed ways to ensure credit flow to businesses once the world's toughest stay-at-home order ends. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)Premium
A motorcyclist wearing a protective mask rides past a Kotak Mahindra Bank Ltd. branch on a near-empty street in Mumbai, India, on Monday, May 4, 2020. India's central bank Governor�Shaktikanta Das�and the chief executive officers of the nation's banks have discussed ways to ensure credit flow to businesses once the world's toughest stay-at-home order ends. Photographer: Dhiraj Singh/Bloomberg (Bloomberg)

  • Customers should note that the moratorium is a deferment of payment and not a waiver of interest
  • The moratorium will apply to all credit facilities granted and disbursed by the Bank and outstanding as on 31 March

In line with Reserve Bank of India's directive on the extension of the loan EMIs moratorium, Kotak Mahindra Bank on Monday extended the deferment of the EMIs till August. RBI and Kotak's aim is to help customers sail through the disruption caused by coronavirus pandemic. The Reserve Bank of India last week had extended the moratorium on loan repayments by three more months, till 31 August.

Banks are offering moratorium to retail customers on a blanket ‘opt-out’ basis. Customers should note that the moratorium is a deferment of payment and not a waiver of interest. You are required to pay the minimum amount due or total outstanding along with accrued interest charges on the due date after 31st Aug 2020.

Kotak Mahindra Bank EMI Moratorium eligibility:

The moratorium will apply to all credit facilities granted and disbursed by the Bank and outstanding as on 31 March. This will also apply to all borrowers of GIFT City branch (subject to applicable laws) and applies to foreign currency denominated facilities of domestic offices/branches.

Point to note: This is not applicable to the loans granted to the NBFCs, Housing Finance Companies and Micro Finance Institutions, which availed facilities from the Bank

Kotak will consider relief in the form of moratorium / deferment to borrowers, who wish to avail and make an application to the Bank seeking

• Moratorium on term loan instalments and credit card dues falling due between June 1, 2020 and August 31, 2020 (New Moratorium Period)

• Deferment of interest for the months of June to August 2020 to -borrowers who availed working capital facilities in the form of CC/OD.

Bank would be examining all the requests and above reliefs would be considered depending on the impact of COVID 19, keeping in view factors including the sector, segment, geography, credit assessment, etc.

Interest would continue to accrue during the moratorium period on the outstanding amount of loan as provided in the RBI circulars. This accrued interest has to be paid by the customers.

All customers, including those who might have availed the moratorium relief earlier and who desire to avail the relief for the New Moratorium Period under this policy can provide the relevant details by clicking here.

The Bank would consider the customer’s request as mentioned above and the customer would be duly intimated. Any dues already paid will not be refunded.

A. Moratorium for Term loans:

• Customers, who are desirous of availing the relief for the New Moratorium Period (i.e., June 1, 2020 to August 31, 2020) under the RBI circular, click here and provide the relevant details.

• The repayment schedule of term loans, wherever relief is approved by the Bank, would shift by up to another three months (in addition to tenor change under phase 1 of moratorium) and the tenor of the term loan will be commensurately extended. The instalment amounts / EMIs will be appropriately re-calculated, including interest accrued during moratorium period.

• The moratorium will be applicable for the principal and / or interest dues for the all or part of the New Moratorium Period. One-time Restructuring Policy due to COVID-19 Page 4

• The Bank would be presenting the post-dated cheques / actioning ECS or NACH -mandates etc., provided by the customers, for collection as per the respective due dates from June 1, 2020. Customers who are desirous of availing the relief for New Moratorium period under the RBI circular, must provide relevant details to the Bank within seven days (or extended date as may be permitted by the Bank) from their first due date falling on or after June 1, 2020. Click here to provide the details. The Bank will consider the requests on merits of the case.

• Credit card customers desirous of availing the relief must provide the relevant details to the Bank, within seven days (or extended date as may be permitted by the Bank) from their first due date falling after June 1, 2020. Click here to provide the details. Bank will consider the requests on merits of the case.

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