Home / Money / Personal Finance /  SBI loan EMI moratorium: Terms, conditions and charges

Following the Reserve Bank of India (RBI) directive to banks to provide a three-month moratorium on repayment of term loans, country's top lender State Bank of India (SBI) has initiated steps to defer the payment of EMIs of housing loan, vehicle loans, MSME loans and payment of all other term loans whose installments are due after March 1 and up to May 31 by three months. “Good news for borrowers! The bank has decided to extend the moratorium for payment of instalments/ EMIs in all term loans for a period of 3 months. This is applicable for EMIs/Installments due between 1st March 2020 to 31st May 2020," SBI said in a tweet.

The system of deferment will function automatically as most banks would not raise demand for EMIs for next three months. SBI has also issued mailers and put FAQs on its site informing the customers about the scheme. The bank has issued the list of emails for sending the application for deferment of EMIs.

Here is a look at the details of SBI's moratorium on loan EMIs:

Customer who do not want to defer recovery of instalments /EMI: No action is required. They may continue to pay in usual course.

Customer who wants to defer recovery of instalments/EMI: NACH – Where collections of such instalment / EMI is effected through National Automated Clearing House (NACH), please submit an Application (Annexure-I) along with mandate for NACH Extension-(Annexure-II) to stop NACH for these instalments through an e-mail to the specified email ID (Annexure-III).

Standing Instructions (SI): Please submit an Application (Annexure-I) through an email to the specified email ID (Annexure-III).

Customers who want refund of the instalment/EMI already paid: Please submit an Application (Annexure-I) through an email to the specified mail ID (Annexure-III)

List of specified mail IDs in Annexure-III, Photo:
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List of specified mail IDs in Annexure-III, Photo:

Impact of Deferment: To enable you to take an informed decision, we furnish here under the impact of deferment:

Interest shall continue to accrue on the outstanding portion of the Term Loan during the moratorium period. The possible impact of the extension of the repayment period has been explained below:

Impact in case of Auto Loan: For a loan of 6 Lakh with a remaining maturity of 54 months the additional interest payable would be 19,000 approx. equal to additional 1.5 EMIs.

Impact in case of Home Loan: For a loan of 30 Lakh with a remaining maturity of 15 years, the net additional interest would be approx. 2.34 Lakh equal to 8 EMIs.

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