IDBI Bank loan EMI moratorium: Terms and charges

The Reserve Bank of India (RBI), on March 27, instructed all lending institutions should offer a three-month moratorium on term loan equated monthly instalments (EMIs). Banks and other lenders have been instructed to give borrowers a grace period of three months for payment of EMIs. These include home loans, auto loans, personal loans, EMIs on debit cards and even credit card dues.

If you are an IDBI Bank customer, here are the details of the bank's EMI moratorium facility. These details are as per the bank's website.
What is the process to be followed for getting the benefit of instalment moratorium?
The scheme will be applicable to all standard term loans under Housing Loan, Loan against Property, Auto Loan, Education Loan & Personal Loan as on March 1, 2020. Wherever the March 2020 instalment has already paid by the borrower, the relief would be applicable for the EMI payable in April 2020 and May 2020.

Since the instalments are not to be paid, how will the loan be adjusted?
Moratorium of three months on payment of EMI instalments falling due between March 1, 2020 and May 31, 2020 will be offered. During the said moratorium period, Interest shall continue to accrue on the outstanding portion of the term loan. The Interest accrued during period of moratorium will be added to the outstanding loan amount at the end of the moratorium period and the repayment schedule for such loans will be reframed. Accordingly, the residual tenor will be shifted by three months.

What will happen after the relief period /moratorium is completed?
Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period and will be added in the loan amount outstanding which will result in marginal enhancement in balance reframed EMIs. The repayment schedule for such loans will be reframed and accordingly, the residual tenor, will be shifted by three months.

This will result in increased EMI and increased tenor of the loan.

What will happen to the accounts which are delinquent/ in default/overdue on or before 1st March 2020?
Since the relief is extended for instalments of loan which are due only between 1st March 2020 to 31st May 2020, the instalments/other amount overdue on or before 29th February 2020 in any of the loan account will have to be paid, in order to avoid down-gradation of account and slippage in credit rating. Please note non-payment of dues up to February 2020 may result in down gradation of account by April 2020.

What if my cash flow is not impacted on account of Covid-19 and hence I do not intend to avail moratorium and want to continue to make the EMI Payment as in past ?
Customer may opt out from EMI moratorium by writing email to moratorium@idbi.co.in latest by April 15, 2020.

The E-mail should mention the following details

• Email Subject should be Loan Account number
• In the E-mail body please mention the following details
• Name of the borrower.
• Loan account number.
• Customer to mention in the email that “I wish to opt out from the instalment moratorium facility offered by the bank, hence kindly continue with existing repayment schedule and deposit my EMI by way of ECS/SI”

The request received in prescribed format will only be considered for consideration of the moratorium Opt-out Facility.

What will be the Last date for opting out of the moratorium relief scheme ?
The last date for opting out of the moratorium relief scheme is April 15, 2020. The borrowers need to send email for opting out from EMI moratorium to moratorium@idbi.co.in latest by April 15, 2020.

Will the Scheme be applicable to term loans availed after March 1, 2020?
The loan account disbursed after March 1, 2020 will not be covered under the Scheme.

Will the moratorium period be considered in Education Loan where moratorium as per scheme is already availed?

• Moratorium relief will not be applicable where the loan is currently under moratorium provided under the scheme without any obligation to pay interest.
• Education loan cases where borrower has opted for interest payment during moratorium the moratorium relief will be provided on the interest payment during the period.
• Education loan cases where EMI has already commenced the moratorium relief will be available on the instalments payable during 1st March 2020 to 31st May 2020.

Are all IDBI Bank Credit Card customers eligible for this moratorium?
Yes. All Credit Card customers will be deemed eligible for the moratorium if they are regular with their payments for February 2020 billing cycle on their credit card outstanding and also other loan products of the Bank, if any.

Do I need to inform bank, if I want moratorium or not?
No, you need not specifically inform Bank.
a) To avail the credit card moratorium, voluntarily defer paying the outstanding during this period. No Late Payment Fee or Auto Debit Return Charges would be charged during this period.
b) If you do not want to opt for moratorium then make payment as normal.

I have set an auto debit on my Credit Card for payment. How can I discontinue the scheduled auto debit facility during the Moratorium period?
Kindly send a mail from your registered Email ID to cc.moratorium@idbi.co.in with Subject Line as “IDBI Bank Credit Card – Temporary discontinuation of Auto-Debit – . The content of the mail should contain the following:

• Name on the Card.
• Customer ID
• Last 4 digits of the Card No.
• Customer to mention in the email body “I wish to temporarily discontinue the Auto Debit facility for my Credit Card during the Moratorium Period. I understand that the unpaid dues in moratorium period will attract interest charges (as per standard interest rate of the card variant as mentioned in applicable terms and conditions).

How will my EMIs be recovered after the period is over for Credit Card transactions? Is it single debit of all the EMIs put together or will my EMIs will be debited monthly as usual?
EMIs would continue to be billed in your statement as per the original amortization schedule. In case of non-payment of statement dues (which includes EMIs billed) by the respective payment due dates, interest charges will accrue at the standard interest rates (as per standard interest rate of the Credit Card variant as mentioned in the applicable terms and conditions). All unpaid EMIs will become due for payment in the month of June 2020.

I have set an auto debit on my Credit Card for payment. Will the auto debit facility be triggered during moratorium period?
Yes, Auto debit will be triggered during the moratorium period as per your existing instructions and based on availability of funds, account will be debited. We understand that majority of our customers may not opt for the Moratorium given that there is an additional levy of interest payable under the terms of the Moratorium. However, in case there is insufficient balance in the account on due date and the Auto Debit Instructions gets rejected, No penal Auto Debit Return Charges would be levied.

Can I avail of EMI on purchases during the moratorium period?
Yes, you will be allowed to apply for conversion of purchases into EMIs as per existing rules. You may also do this through Credit Card Net Banking https://idbicreditcards.co.in/.

Will I earn reward points on the transactions done during moratorium period?
Yes, you will keep on earning reward points on your transactions as per your card’s policy.

Will I be able to transact with my Credit Card during the moratorium period?
Yes. you will be able to transact as per the available balance and card/account status.