ICICI Bank is offering its customers option-based deferment of EMI payments on term loans for the next three months, on directions of the Reserve Bank of India (RBI). Some ICICI Bank customers will automatically be allowed a moratorium but can opt out if they wish to, while others will have to specifically ask for a deferment. On March 27, the Reserve Bank of India (RBI) said that all the lending institutions, including banks and housing finance companies, will have to give its borrowers a three-month moratorium on term loans.

"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 mentioned on its website.

"In line with RBI's Covid19 relief package, ICICIBank offers its customers a choice of either paying towards their loans/credit facilities or opting for a moratorium till May 31, 2020," ICICI bank said in a tweet.

"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 the above loan/credit facilities, if the borrowers/customers (whose cash flows are not impacted) do not wish to avail the moratorium, they may OPT-OUT from the Moratorium by clicking on the link shared with them by the Bank through (i) SMS or (ii) e-mail.

For all other types of facilities, borrowers/customers will have to specifically OPT-IN for availing the moratorium and postponement of payments falling due for payment between the period beginning March 1 until May 31, 2020.

In the case of customers/ borrowers enjoying multiple credit facilities from the bank, the moratorium option will have to be exercised individually/separately for each type of credit facility.

ICICI Bank Loan EMIs Moratorium: All Questions Answered,

Is moratorium compulsory or optional?

The moratorium is optional for all kinds of credit facilities such as retail loans, Home Loans, Business Loans, Cards and Farmer Loans.

For what period can the moratorium be granted?

A moratorium may be granted up to a period of three months for all amounts falling due between March 1 and May 31, 2020.

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.

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.

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 to the credit facility and the underlying security shall continue to secure the funded interest.

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 the future and the moratorium is for customers whose repayment (interest or EMI) is active in the period March 1 to May 31, 2020.

If the customer has principal moratorium running in Education Loan, can he/she still avail this facility?

Yes, the moratorium is available for interest amounts payable.

Do I need to submit fresh Auto Debit or NACH debit mandates?

No, as the EMI will remain the same and tenure will increase to recover the deferred interest accrued during the moratorium period, there is no need for fresh Auto Debit (AD)or NACH mandate. If you opt for a moratorium, the residual tenure will increase to recover the accrued interest during the moratorium period. However, in case the installment amount increases, then a fresh NACH mandated will be required.

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 the terms and conditions of the facility, if prepayment is permitted then you may pay the EMIs in Jun 2020.

Will the seeking of Moratorium by the borrower have an impact on their credit/bureau score?

The moratorium on payments will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs)/credit bureau by the Bank. Hence, there will be no adverse impact on the credit history of the borrowers.Any delay in payments of dues/ outstanding amounts payable after the expiry of the Moratorium for customers(s)/ borrower(s) who had availed of the Moratoriumwill qualify for the purposes of reporting to Credit Information Companies (CICs)/credit bureau bythe Bank.

What would be the interest accrued/charged on my Credit Card dues?

For all Credit Card dues (including any unpaid EMIs till the respective payment due date), standard interest rates of the card variant as per the applicable terms and conditions willbe levied. For all EMI transaction, the interest rate specified at the time of availingofEMI facility would be levied.

Do I need to pay my Credit Card outstanding during the moratorium period?

No,payment needsto be made during the moratorium period. During the moratorium period, as per the billingcycle dates, interest charges (at standard interest rate as per the card variant in accordance with the applicable terms and conditions)will be levied.

Do I need to pay my EMI on Debit Card outstanding during the moratorium period?

No, if you have opted for moratorium on your EMI on Debit Card, no payment needs to be made during the moratorium period. While outstanding including interest levied as per EMI on Debit Cardpolicy needs to be paid once the moratorium period is over i.e. by the payment due date of Jun 2020 statement.During the moratorium period, as per the statement cycle dates, interest charges at standard interest rate as specified at the time of availing of the EMI on Debit Card will be levied if your dues are not cleared within the payment due date.

Will Late Payment charges be levied during moratorium period?

If you opt for moratorium on your EMI on Debit Card, no late payment charges will be levied.