RBI 3 Month Loan EMI Facility due to COVID-19 | Axis Bank Loan, Credit Card EMI 3 Month Plan (Orders) | Axis Bank Online Avail/ Apply for 3 Month extend EMI duration – March/ April/ May 2020 | Axis Bank EMI Interest Charges with example | COVID-19 Axis Bank Loan EMI, Credit Card Extra Charges
Reserve Bank of India (RBI) announced guidelines on COVID-19 Regulatory Package dated 27th March 2020 that will ensure that people facing financial crises can avail the moratorium benefit by their BANKS i.e. SBI, HDFC, Axis Bank, ICICI, PNB Housing, PNB, Bank of Baroda etc.
In this article, we are providing official notification by the Axis Bank for the customer having Credit Card/ Loans/ Term Loans/ Cash Credit/Overdraft etc. Also, check the benefit and drawbacks to avoid regular EMI during the COVID-19 moratorium with example. Understand the Axis Bank EMI Rules and regulations.
Duration of EMI Exemption
Table of Contents
According to the RBI, all Banks in India has to give minimum of 3 months moratorium benefit to customers. So, if you have Loan or Credit Card bills then you can avail 3 month exemption from paying your EMI. But before that, you should also read the FAQ section given below.
In the FAQ, we are providing the benefits or drawbacks of missing regular EMI. Is missing EMI will affect CIBIL score etc.
Duration of 3 Month moratorium: 1 March 2020 to 31 May 2020.
Avail 3 Month EMI Mo
For Loans
The OPT-IN / request for the Deferment option would be applicable for the current month, only if the same is received by the Bank at least 5 days prior to the due date, else such request would be applicable for the month of May 2020 only.
The OPT-IN/request for Deferment would be applicable to all standard loans as on 1st March 2020. If March 2020 dues have already been paid by me, the deferment would be applicable for dues in April 2020 and May 2020 and if dues for March are unpaid as of date, this request would be applicable for March 2020 as well.
For Credit Card
OPT IN request can be submitted any time till May 31, 2020.
Once I/we OPT-IN for the Deferment option on my/our credit card(s), my/our entire Open to Buy (OTB) will be blocked, and I/we will not be allowed to make any fresh purchases till a payment (at least Minimum Amount Due) is made towards my/our credit card dues reflecting in statement generated in June 2020
Loans under RBI Moratorium
You can avail 3 months EMI moratorium on below loans.
- Personal loan
- Home loan
- Auto loan
- Education loan
- Loan against property
- Agricultural term loans
- Retail Loans
- Crop loans etc,
As per the approved policy of the board, a moratorium has been extended to borrowers for certain loans/credit facilities such as:
- Gold Loans
- Kisan Credit Card (KCC) loans and Farmer Loans (Cash Credit, Overdraft and Term Loan)
- Microfinance loans (extended by the bank and BC partners)
- Commodity Loans
- Tractor Loans
- Commercial Vehicle Loans
- Construction Equipment Loans
- Business Loans
- Government-sponsored schemes
- Unsecured overdraft and term loans(Small Business Banking )
RBI 3 Months Moratorium (Benefit and Drawbacks)
Here is the example that you should check before missing REGULAR EMI or Paying for Credit Card dues. In case, you have a financial issue, then you can avail this facility of missing 3 EMI.
CREDIT CARD
Example: You have used your Credit Card on 17 February 2020 for Rs 10,000/-. Your credit card bill generated on 17th March 2020. Now, let’s suppose your Credit Card due payment date is 8th April 2020.
Now, if you opt for the Moratorium Benefit, then you have to pay total interest + GST of Rs 1,739 (assuming interest rate of 3.5% per month). The total amount of Rs 11,739 will appear in your statement on 8th June 2020
Interest charges will continue to accrue as per normal rates, and will be billed to you at the end of the moratorium period
For illustration purposes only:
The calculations illustrated below is only considering that Customer has made one purchase worth Rs. 10000 on 12th Feb’20.
| Date | Details | Scenario 1: 100% payment | Scenario 2: 50% payment | Scenario 3: 10% payment | Moratorium: 0% payment |
|---|---|---|---|---|---|
| 12-Mar-20 | Outstanding | 10,000 | 10,000 | 10,000 | 10,000 |
| 02-Apr-20 | Payment made | 10,000 | 5,000 | 1,000 | 0 |
| 12-Apr-20 | Outstanding from previous statement | 0 | 5,000 | 9,000 | 10,000 |
| Interest charged @3.5% + GST (from 12th Feb) | 0 | 413 | 743 | 826 | |
| Total outstanding | 0 | 5,413 | 9,743 | 10,826 | |
| 02-May-20 | Payment made | 0 | 2,707 | 974 | 0 |
| 12-May-20 | Outstanding from the previous statement | 0 | 2,707 | 8,769 | 10,826 |
| Interest charged @3.5% + GST | 0 | 112 | 362 | 447 | |
| Total outstanding | 0 | 2,818 | 9,131 | 11,273 | |
| 02-Jun-20 | Payment made | 0 | 1,409 | 913 | 0 |
| 12-Jun-20 | Outstanding from the previous statement | 0 | 1,409 | 8,218 | 11,273 |
| Interest charged @3.5% + GST | 0 | 58 | 339 | 466 | |
| Total outstanding | 0 | 1,467 | 8,558 | 11,739 | |
| Total interest charged during the moratorium | 0 | 583 | 1,445 | 1,739 |
Loans or Terms Loans
In the Loan/ there is no penalty if you are availing RBI moratorium. Let’s see the below example:
Mr. Karan has a term loan of Rs 25 lacs at a 9% rate of interest p.a., EMI of Rs 22,493 for 240 months. His Principal outstanding after 12 months as of 31st March 2020 is Rs. 24,53,182. If he avails 2 months moratorium for the months of April 2020 and May 2020, then the principal outstanding from June 2020 would be Rs. 24,89,949.
EMI Duration: It will increase by 3 months if you avail it for 3 months.
Cash Credit or Overdraft @Axis Bank 3 Months Rules
For OD/CC account (moratorium availed for 3 months) – Mr. A has an OD/CC limit of Rs 1 crore at 11% rate of interest p.a. having average utilization of Rs 50,00,000 during the months of March, April, May, and June. Accrued interest for March, April and May would be Rs. 1,38,630. This interest will be due and payable on 1st June 2020.
In addition to this, the interest of Rs.45,205.00 for the month of June will be due and payable on 30th June 2020.
FAQ – Axis Bank Loan Moratorium
Question: Is availing RBI Moratorium for Axis Bank Home Loan/ Card Laon effects CIBIL Score?
Answer: There are no effects of CIBIL Score if you avail the Moratorium for March/ April/ May 2020. But if there is any due before 1 March 2020.
Question: I have more than 1 loan from Axis Bank, SBI Loan, etc. Can I avail on all loan accounts?
Answer: Yes The moratorium would be given to all the loans linked under your customer id with the bank once you choose to avail it.
Question: Should I have to apply again, if I avail for April 2020?
Answer: No, If you apply for this time. Then you don’t have to apply again.
Complete FAQ – Axis Loan
FAQ – Axis Bank Credit Card Moratorium
Question: Will it affect the Credit Card score if I avail the RBI Moratorium?
Answer: No. Non-payment of your outstanding during the moratorium period will not result in any impact on credit score.
Question: What If I avail the Moratorium and pay my Credit Card bill in between? Will I have to pay Interest then?
Answer: If you make payment during the moratorium period, the payment will be adjusted against your outstanding. You will not be charged interest on the payment amount from the day the payment is credited to your account.
Note: If you have any questions. Please let us know via Comments.
| Axis Bank Moratorium | Read Here |
| Axis Bank Loan FAQ | Read Here |
| Axis Bank Credit Card FAQ | Read Here |
| Avail 3 Months Moratorium | Apply Now |
| RBI Grievance Cell Loan, EMI Refund Complaint | Complete Details |
| Opt Out Moratorium (Axis Bank) | Apply Online |
| Online Complaint | Check Here |
When you apply for the Moratorium, you need to submit your mobile number/ OTP.