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    ICICI Bank loan EMI moratorium: How it works and the charges

    Synopsis

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

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    On March 27, 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 all term loans. The moratorium is for payment of all instalments falling due between March 1, 2020 and May 31, 2020. According to the RBI, the deferred instalments under the moratorium will include the following payments falling due from March 1, 2020 to May 31, 2020: (i) principal and/or interest components; (ii) bullet repayments; (iii) equated monthly instalments (EMIs); (iv) credit card dues.

    Banks have followed suit and announced details of the EMI moratorium on their websites. Here is a look at details of ICICI Bank's moratorium on loan EMIs. These details have been published on the bank's website.

    The borrower(s)/ customer(s) can choose to OPT-IN or OPT-OUT, for availing of the Moratorium in respect of the credit facility(ies) availed.

    ICICI Bank has, as per the Bank’s approved policy extended Moratorium to the borrower(s)/customer(s) for certain loans/ credit facilities such as Kisan Credit Card (KCC), Farm Equipment (FE), Self-Help Group (SHG)/Joint Lending Group (JLG)/Loans given through Business Correspondent (BC), Jewel Loan, Corporate Farmer Finance, Business Lending -Unsecured (Current Account Over Draft/Small Business Loan/Roaming Protect/Loan Against Credit Card Receivable, Dealer Funding, Working Capital/Trade Advance to Auto Dealers, Commercial Business, Working Capital/Trade Advance to Commercial Business customers, Consumer Finance, Two Wheeler Loans.

    With respect to above loan/ credit facilities if the borrower(s) / customer(s) (whose cash flows are not impacted) do not wish to avail of the Moratorium, borrower(s) / customer(s) may OPT-OUT from the Moratorium by clicking on the link shared with the borrower(s) /customer(s) by the Bank through (i) SMS or (ii) e-mail. You may also visit ICICI Bank’s website www.icicibank.com failing which it will be deemed that borrower/ customer has opted for Moratorium.

    In respect of all other types of facilities, borrower(s)/customer(s) will need to specifically OPT-IN for availing of Moratorium and postponement of payments falling due for payment between the period beginning Mar 01 until May 31, 2020.

    In case of customer(s)/ borrower(s) enjoying multiple credit facility(ies) from the Bank, the Moratorium option will have to be exercised individually/ separately for each type of credit facility.


    1. How can I opt for the moratorium?
      You can opt for the moratorium by clicking on the link shared with you by the Bank through (i) SMS or (ii) e-mail. You may also visit ICICI Bank’s website www.icicibank.com .
    2. How will interest be charged and recovered for retail term loans such as Home Loans, Personal Loans, Consumer Durable Loans, Two-Wheeler Loans, Auto Loans?
      The accrued interest would be added to the principal amount which will increase the residual tenure of the loan except in cases where extension of tenure is not possible in which case the EMI amount will increase. Please refer to the relevant applicable terms and conditions for further details.Illustration: Mr Kumar availed of a housing loan in Mar 01, 2020 amounting to Rs one crore with loan tenure of 236 months. If Mr Kumar wants to avail of moratorium of instalment of Rs 90,521.00 which is due on Apr 01, 2020 then the interest for the month of March amounting to Rs 75,000 will be added to the principal amount and revised opening principal amount on Apr 01, 2020 will become Rs 10,075,000. The interest will be computed on revised principal. Similarly, the interest for the month of April which is payable on May 01, 2020 of Rs 75,562 will be added to the opening principal on May 01, 2020 which will be Rs 10,150,562. The interest will be computed on revised principal. In this case Mr Kumar’s tenure will increase from 236 months to 249 months considering the unchanged rate of interest and instalment amount during this period.
    3. How will interest be charged and recovered for cash credit/ overdraft facilities?
      The accrued interest will be due and payable immediately after the end of the moratorium i.e. in Jun 2020. Please refer to the relevant applicable terms and conditions for further details. The postponed interest (funded interest) shall carry interest at the rate applicable on the credit facility and the underlying security shall continue to secure the funded interest.Will there be late payment charges/ default interest/ additional interest for the deferred instalments during the moratorium period?No late payment charges/ default interest/ additional interest shall be levied during the moratorium period.
    4. If the customer has already availed of a moratorium for an Education Loan, can the tenure get extended on account of the Covid Regulation?
      No, since the repayment for such customers will start in future and the moratorium is for customers whose repayment (interest or EMI) is active in the period Mar 01 to May 31, 2020.
    5. If customer has principal moratorium running in Education Loan, can he/she still avail of this facility?
      Yes, the moratorium is available for interest amounts payable.
    6. Do I need to submit fresh Auto Debit or NACH debit mandates?
      No, as the EMI will remain same and tenure will increase to recover the deferred interest accrued during the moratorium period, there is no need of fresh Auto Debit (AD) or NACH mandate. If you opt for moratorium, the residual tenure will increase to recover the accrued interest during moratorium period. However, in case the instalment amount increases, then a fresh NACH mandated will be required.
    7. Will a payment of EMI during the moratorium be considered as prepayment?
      If the due EMI is paid, then it will not be considered as prepayment and there will not be any prepayment penalty on the same.
    8. For the retail Term Loans, can I pay all 3 months’ EMI in Jun 2020?
      As the tenure of the retail term loans has been extended on account of the moratorium, the customer is required to pay the EMIs as per the revised schedule. However, as per terms and conditions of the facility, if prepayment is permitted then you may pay the EMIs in Jun 2020.
    9. If I have sufficient balance in my account and instalment of my loan(s) is due, will the Bank debit the EMI during this period?
      Yes, if you have not opted in for the moratorium.
    10. Does the customer need to submit any documents for availing of the Moratorium?
      No, you can opt for the moratorium by clicking on the link shared with you by the Bank through (i) SMS or (ii) e-mail. You may also visit ICICI Bank’s website www.icicibank.com .
    11. As per RBI, the moratorium is for 3 EMIs, can I get refund of EMI paid in Mar 2020.
      No. EMI paid prior to Mar 27, 2020 will not be refunded. However, if any EMI is debited after Mar 27, 2020 and the borrower/ customer opts for moratorium then such EMI maybe considered for refund at the request of the borrower/ customer.
    12. In case of multiple facilities availed from the Bank, whether the moratorium is applicable for all facilities?
      You need to specifically select every facility for availing of moratorium for the respective type of credit facility. You can opt for the moratorium by clicking on the link shared with you by the Bank through (i) SMS or (ii) e-mail. You may also visit ICICI Bank’s website www.icicibank.com .

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    29 Comments on this Story

    Rakesh Vasoya2 days ago
    MY CAR LOAN STOP 3MONTH PLZ
    Jafar naim2 days ago
    Stop all Emi 3 months stop credit card
    Jigar Balwani3 days ago
    Stop all emi 3 month
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