Several government-run banks have allowed their loan borrowers— customers with active term loan accounts—to delay paying their monthly installments for a period of three months.
Public sector lenders, including the likes of State Bank of India (SBI), Punjab National Bank, Bank of Baroda, Canara Bank, Oriental Bank of Commerce, and Indian Bank, took to Twitter to announce their decisions separately, allowing their term loan borrowers to delay their EMIs due between March 1 and May 31, as the country entered seventh day of the nationwide lockdown to curb the spread of deadly coronavirus pandemic.
The development comes days after the Reserve Bank of India (RBI) permitted commercial banks as well as other lending institutions to take measures to relax the EMI burden on term loan borrowers in view of the coronavirus-induced lockdown.
COVID-19 – Regulatory Packagehttps://t.co/mA6h9KpLm1
— ReserveBankOfIndia (@RBI) March 27, 2020
In a statement on Twitter, the country’s largest bank by assets, SBI, said it had “initiated steps to defer the instalments and interest/EMIs on term loans falling due between March 1, 2020 and May 31, 2020, and extended the repayment period by three months”.
— State Bank of India (@TheOfficialSBI) March 31, 2020
In terms of Covid 19- RBI package, borrowers are eligible for moratorium/ deferment of installments/EMI for Term loans falling due from 01.03.2020 to 31.05.2020 & repayment period gets extended accordingly. SMS also has been sent to customers to avail the same. @DFS_India #COVID pic.twitter.com/NGuw1pARiv
— Canara Bank (@canarabank) March 31, 2020
#BankofBaroda is providing a moratorium of 3 months on payment of all instalments falling due between 01.03.20 & 31.05.20 for all term loans including Corporate, MSME, Agriculture, Retail, Housing, Auto, Personal loans, etc. in pursuance of the RBI COVID-19 Regulatory Package.
— Bank of Baroda (@bankofbaroda) March 31, 2020
PNB presents relief scheme for our customers. In view of COVID-19, it has been decided to defer payment of all installments on term loan and recovery of interest on cash credit facilities falling due between March 01,2020 and May 31 2020.@DFS_India @dfsfightscorona pic.twitter.com/dHRvu5luXb
— Punjab National Bank (@pnbindia) March 31, 2020
Last Friday, the regulator announced a slew of measures to strengthen the financial system against the economic fallout from the spread of COVID-19 disease, including hefty cuts in key lending rates. It also directed financial institutions to provide relief in the form of delayed EMIs as the three-week lockdown that began on March 25 is currently underway.
The government has maintained that all bank branches and ATMs in the country will remain open during the 21-day period.