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    Kotak Mahindra Bank loan EMI moratorium: Terms, charges

    Synopsis

    Here is a look at the details Kotak Mahindra Bank's moratorium on loan EMIs. These are details as published on the bank's website.

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    On 27 March 2020, the Reserve Bank of India (RBI) said that all lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans. The moratorium is for payment of all instalments falling due between March 1, 2020 and May 31, 2020.

    Here is a look at the details Kotak Mahindra Bank's moratorium on loan EMIs. These have been published on the bank's website.

    Bank’s policy for providing the said relief to borrowers
    This policy applies to all credit facilities granted and disbursed by the Bank and outstanding as on March 31, 2020. This is not applicable to loan disbursements to be made in April 2020 and thereafter. 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. The Bank would provide separate terms and conditions for different types of loan. Other credit conditions in the sanction letters already issued would remain unchanged.

    The Bank will offer to all borrowers who wish to avail of the facility of moratorium (for term loan instalments and credit card dues falling due between March 1, 2020 and May 31, 2020) and / or deferment of interest for the months of March to May 2020 to all borrowers who availed working capital facilities.

    The Bank would be charging the interest, at the original contracted rate, for the moratorium period on the outstanding amount of loan to all those who avail the relief as provided in the RBI circular. This interest has to be paid by the customers as prescribed in this policy.

    All customers who desire to avail the relief under the policy can send an email from their registered mail id to pay.later@kotak.com quoting the Loan account / APAC number.


    Moratorium for term loans
    • The repayment schedule of term loans will shift by up to three months and the tenor of the term loan will be commensurately extended. The instalment amounts / EMIs will be appropriately recalculated, including interest during moratorium period.
    • If borrowers have already paid their instalments or serviced their interest for March 2020, such borrowers can avail moratorium for installments falling due in April and May 2020.
    • 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. Customers that are desirous of availing the relief under the RBI circular, should send a communication 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 April 1, 2020 through a mail from their registered mail id to pay.later@kotak.com. Customers, whose instrument so sent for collection is not cleared, will be deemed to have availed of the moratorium and necessary relief would be provided as per the RBI guidelines.
    • Credit card customers will be given an option to avail of relief under the RBI circular will be sent instructions along with their first statement falling due on or after April 1, 2020. Customers who do not pay their total amount due, as payable in the months of March, April, May would be automatically enrolled for the Moratorium. Customers desirous of availing the relief should send a communication to the Bank within seven days (or extended date as may be permitted by the Bank) from their first due date falling after April 1, 2020 through a mail from their registered mail id to pay.later@kotak.com.

    Validity of the policy
    This policy shall be valid up to 31st May 2020 or further period as may be extended by RBI.

    Prudential norms
    • The moratorium/deferment granted to borrowers will not qualify as default on the part of borrowers for the purposes of supervisory reporting and reporting to credit information companies (CICs).
    • The relief given as above as per the special dispensation given by RBI will not result in any downgrade of asset classification.
    • However, if there is an existing default like interest/principal due up to February 29, 2020, the usual asset classification and provisioning norms will apply.

    While this policy outlines the broad internal guidance that the Bank will follow to take decisions regarding moratorium, the Bank retains the discretion to take decisions regarding this policy depending on case specific issues or nuances. Bank reserves the right to amend the policy within the framework of RBI regulations.

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    7 Comments on this Story

    MOHD isha m zubair s7 days ago
    I need dredit card monotorium
    Ajay Kumar71 days ago
    Sir paise hai nhi kha se de EMI car ki
    Vijaykumar Pothanaboyana79 days ago
    Credit card emi
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