Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer
4 years, 8 months ago

Coronavirus | Salaried borrowers continue EMIs, ignore moratorium offer

The Hindu  

The option of a moratorium on loan repayments that was announced by the Reserve Bank of India last month has mostly been availed by micro, small and medium enterprises while salaried class borrowers have, till now, largely refrained from availing the facility, bankers said. “About 85-90% of businesses in the MSME sector have availed the loan moratorium,” the chief executive officer of a public sector bank told The Hindu, speaking on the condition of anonymity. “Some borrowers from the micro and medium enterprises have opted,” said the managing director of another public sector bank. “A clear picture on how many of the salaried borrowers have availed themselves of the moratorium will emerge after some time, as customers still have some more days to indicate their choice,” an official from a private sector lender said.

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History of this topic

No case of COVID-19 related stress to which banks showed apathy, RBI tells SC
4 years ago

No case of COVID-19 related stress to which banks showed apathy, RBI tells SC

The Hindu  

The Reserve Bank of India on Wednesday maintained in the Supreme Court that there has not been a single case of COVID-19 related financial stress to which banks have shown an “apathetic” attitude. A three-judge Bench led by Justice Ashok Bhushan is hearing several pleas by industry and business sectors, including power and real estate, to extend the moratorium or …

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period
4 years, 2 months ago

Here is What You Will Get if You Paid Your EMIs on Time During Loan Moratorium Period

News 18  

The Reserve Bank of India had in March, after the outbreak of the novel coronavirus, provided a moratorium on repayment of EMIs and credit card dues for three months. The top court in the due course directed the Centre to implement “as soon as possible” interest waiver on loans of up to Rs 2 crore under the RBI moratorium scheme. …

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5
4 years, 2 months ago

Loan moratorium | Centre informs Supreme Court it will repay additional interest by November 5

The Hindu  

The Centre has informed the Supreme Court that the difference in the compound interest and simple interest charged for six months of moratorium period on eight categories of loans worth up to ₹2 crore will be paid back to borrowers by November 5, 2020. "The Central Government has directed that all lending institutions shall give effect to the scheme and …

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium
4 years, 2 months ago

Govt Waives Interest on Interest for Loans Up to Rs 2 Cr Even for Those Who Didn't Opt for Moratorium

News 18  

New Delhi: In a relief to borrowers at the onset of the festive season, the government on late Friday night announced waiver of interest on interest for loans up to Rs 2 crore irrespective of whether moratorium was availed or not. The apex court on October 14 directed the Centre to implement "as soon as possible" interest waiver on loans …

Moratorium extension not in borrowers\' interest: RBI tells SC
4 years, 2 months ago

Moratorium extension not in borrowers\' interest: RBI tells SC

Deccan Chronicle  

New Delhi: A loan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India told the Supreme Court on Saturday. In its 17-page “consolidated affidavit” filed ahead of the hearing on Tuesday of the loan moratorium case, the …

SBI loan restructuring: How interest will be calculated during moratorium extension period
4 years, 3 months ago

SBI loan restructuring: How interest will be calculated during moratorium extension period

India Today  

A few days ago, the country’s largest lender State Bank of India came out with a set of rules and regulations for offering an extension on loan repayments to those affected financially by the Covid-19 pandemic. However, there are several key aspects that Covid-affected customers need to know before availing moratorium extension on repayments under SBI’s loan repayment framework. Loan …

Loan moratorium can be extended by 2 years: Govt
4 years, 4 months ago

Loan moratorium can be extended by 2 years: Govt

Live Mint  

The moratorium for repayment of loans can be extended by up to two years, according to a 6 August circular by the Reserve Bank of India, solicitor general Tushar Mehta told the Supreme Court on Tuesday. The central government also apprised the bench that it has filed an affidavit stating that the National Disaster Management Authority has taken cognizance of …

Interest waiver on EMIs during moratorium against basic canon of finance: Centre
4 years, 4 months ago

Interest waiver on EMIs during moratorium against basic canon of finance: Centre

Live Mint  

Waiver of interest on deferred EMIs during the moratorium period would be against “the basic canons of finance” and unfair to those who repaid loans as per schedule, the Centre told the Supreme Court on Tuesday. The government said any “post facto” change in the terms of the RBI circulars with regard to non-charging of interest during the moratorium period …

Most companies that availed loan moratoriums were facing challenges before COVID-19: Crisil
4 years, 4 months ago

Most companies that availed loan moratoriums were facing challenges before COVID-19: Crisil

India TV News  

Most companies that availed loan moratoriums have sub-investment grade ratings and were facing challenges before the onset of the pandemic itself due to slowing economic growth, domestic ratings agency Crisil said on Monday. In a report released on the last day of the moratorium, the agency said it analysed 2,300 non-financial sector companies which have taken recourse to non-payment of …

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31
4 years, 4 months ago

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31

News 18  

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced by them following the outbreak of the COVID-19, sources said. It was only a temporary reprieve to borrowers affected by the pandemic, the sources said, adding that …

Can loan moratoria thrive while NPAs rise? | The Hindu In Focus podcast
4 years, 5 months ago

Can loan moratoria thrive while NPAs rise? | The Hindu In Focus podcast

The Hindu  

To help people whose cash flows and incomes were suddenly disrupted by COVID-19 and the attendant lockdown, the Reserve Bank of India, back in March, announced a loan moratorium scheme. Now, as we enter the last month of this extension, there is yet another round of debate on whether the moratorium scheme should get another extension, say, till December. So …

RBI Must Monitor Implementation Of Loan Moratorium Circular; Borrower Entitled To Seek Moratorium As A Matter Of Right For Continuity Of Business : Karnataka HC
4 years, 6 months ago

RBI Must Monitor Implementation Of Loan Moratorium Circular; Borrower Entitled To Seek Moratorium As A Matter Of Right For Continuity Of Business : Karnataka HC

Live Law  

The High Court of Karnataka has held that a borrower is entitled to seek loan moratorium on the basis of the Reserve Bank of India's March 27 circular, on the ground that the non-grant of it would affect the continuity of buisness.While acknowledging that the grant of moratorium as per the RBI circular is the discretion of the bank, the …

State-run lenders have at least ₹7.9 tn loans under moratorium
4 years, 6 months ago

State-run lenders have at least ₹7.9 tn loans under moratorium

Live Mint  

India’s five largest state-run banks collectively have at least ₹7.9 trillion of loans under moratorium, including loans that were stressed even before the coronavirus outbreak, regulatory filings showed. Different banks are using different methods to calculate the moratorium amount and there is a lack of coherence at the moment,” said Asutosh Mishra, head of research, institutional equity, Ashika Stock Broking. …

SC directs Centre and RBI to review loan moratorium scheme
4 years, 6 months ago

SC directs Centre and RBI to review loan moratorium scheme

Live Mint  

NEW DELHI: The Supreme Court on Wednesday directed the Centre and Reserve Bank of India to review the moratorium scheme on term loans and create tailored schemes for various sectors, including agriculture. The central bank had on 22 May extended moratorium on term loans till 31 August amid the nationwide lockdown due to covid-19. In March, the central bank had …

Moratorium will hurt NBFC balance sheets: experts
4 years, 7 months ago

Moratorium will hurt NBFC balance sheets: experts

Live Mint  

The six-month moratorium on loan repayments will hurt the balance sheets of Indian non-bank financiers, as most borrowers availed the scheme, but the lenders were denied the benefit by banks, said industry experts. Speaking via videoconference at CII’s Annual Session 2020 on Tuesday, the experts said while the moratorium will help borrowers, it was not the most effective solution to …

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]
4 years, 7 months ago

'Levy Of Interest During Moratorium Takes Away Benefit' : Plea In SC Challenges May 22 Circular Of RBI [Read Petition]

Live Law  

The Maharashtra Chambers of Housing Industry – Thane Unit has approached the Supreme Court of India vide a Writ Petition under Article 32 of the Constitution of India challenging the decision of the Reserve Bank of India to allow levy interest during the 6-month moratorium period announced in the wake of COVID-19 lockdown.The MCHI – Thane Unit is an association …

Coronavirus Lockdown: SC issues notice to Centre, RBI on plea against interest on loans during moratorium
4 years, 7 months ago

Coronavirus Lockdown: SC issues notice to Centre, RBI on plea against interest on loans during moratorium

Firstpost  

The Supreme Court Tuesday asked the Centre and the RBI to respond to a plea challenging levy of interest on loans during the moratorium period, which has now been extended by another three months till August 31 due to the coronavirus pandemic New Delhi: The Supreme Court Tuesday asked the Centre and the RBI to respond to a plea challenging …

RBI monetary policy: Central bank extends moratorium on loans for another 3 months till August
4 years, 7 months ago

RBI monetary policy: Central bank extends moratorium on loans for another 3 months till August

Firstpost  

Reserve Bank Governor Shaktikanta Das on Friday extended the moratorium on payment of loans by another three months till August to provide much-needed relief to borrowers whose income has been hit due to the coronavirus crisis Mumbai: Reserve Bank Governor Shaktikanta Das on Friday extended the moratorium on payment of loans by another three months till August to provide much-needed …

Coronavirus Lockdown: Rs 6.45 lakh cr worth loans sanctioned by PSBs during 1 March-15 May, says Nirmala Sitharaman
4 years, 7 months ago

Coronavirus Lockdown: Rs 6.45 lakh cr worth loans sanctioned by PSBs during 1 March-15 May, says Nirmala Sitharaman

Firstpost  

State-owned banks have sanctioned about Rs 6.45 lakh crore worth loans to various sectors including MSME, agriculture and retail between 1 March and 15 May when businesses were reeling under the impact of COVID-19 crisis New Delhi: State-owned banks have sanctioned about Rs 6.45 lakh crore worth loans to various sectors including MSME, agriculture and retail between 1 March and …

Coronavirus Lockdown: RBI may extend moratorium on repayment of loans for three more months, says report
4 years, 7 months ago

Coronavirus Lockdown: RBI may extend moratorium on repayment of loans for three more months, says report

Firstpost  

With the government extending the nationwide lockdown up to 31 May, the Reserve Bank of India is likely to extend the moratorium on repayment of loans for three more months, according to an SBI research report Mumbai: With the government extending the nationwide lockdown up to 31 May, the Reserve Bank of India is likely to extend the moratorium on …

Coronavirus lockdown | Rental housing and support for small businesses, vendors and farmers: Nirmala Sitharaman
4 years, 7 months ago

Coronavirus lockdown | Rental housing and support for small businesses, vendors and farmers: Nirmala Sitharaman

The Hindu  

The Centre will help create affordable rental housing for the urban poor and provide relief worth ₹1,500 crore to small businesses through an interest subvention scheme, apart from extending credit for street vendors, farmers, and middle-class housing. Affordable housing Noting that migrant workers and other urban poor face difficulties in finding affordable housing, the Finance Minister said a scheme to …

Coronavirus Outbreak: RBI governor Shaktikanta Das meets NBFCs, MFs sector; reviews liquidity situation
4 years, 8 months ago

Coronavirus Outbreak: RBI governor Shaktikanta Das meets NBFCs, MFs sector; reviews liquidity situation

Firstpost  

Operations of NBFCs have commenced from Monday as the government eased restrictions for the lockdown. Mumbai: Reserve Bank governor Shaktikanta Das on Monday reviewed liquidity position and ways to promote lending to the MSME sector during a meeting with representatives of non-banking financial companies and mutual funds amid the lockdown induced by the COVID-19 pandemic. Some of the issues discussed …

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium
4 years, 8 months ago

Coronavirus | Supreme Court directive to RBI on loan repayment moratorium

The Hindu  

The Supreme Court on Thursday asked Reserve Bank of India to ensure that the central bank’s March 27 circular directing banks and financial institutions to provide borrowers a three-month moratorium on loan repayments is implemented in “letter and spirit” amid the COVID-19 pandemic. “We direct Reserve Bank of India to ensure the implementation of the circular dated March 27, 2020 …

Coronavirus slump: NBFCs cast shadow on economic recovery
4 years, 8 months ago

Coronavirus slump: NBFCs cast shadow on economic recovery

Live Mint  

In the second week of April, deep into India’s initial 21-day lockdown to curtail the spread of the coronavirus, senior officials at Bajaj Finance Ltd. held a conference call. Now, if bad loans rise as many including the central bank expect, banks and shadow lenders are set to become ever more cautious just when credit is most needed to keep …

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans
4 years, 8 months ago

IBA urges govt, RBI to double moratorium period to 6 months; seeks credit guarantee for MSME loans

Firstpost  

Bankers believed that some safety net has to be created for both industry and banks for survival first, sources said, adding, revival would follow. Some of the key recommendations included blanket credit guarantee for MSME loans, one-time loan restructuring for sectors hit hard by COVID-19 and raising of moratorium and relief for the NBFC sector, sources said. Based on the …

Microfinance industry seeks extension of loan moratorium
4 years, 8 months ago

Microfinance industry seeks extension of loan moratorium

The Hindu  

Microfinance industry association Sa-dhan has written to Prime Minister Narendra Modi seeking extension of loan moratorium benefits to the microfinance industry. “Despite Reserve Bank of India’s circular pertaining to moratorium on retail loans, financial institutions are refraining from extending the same benefits to microfinance institutions,” P. Satish, executive director – Sa-Dhan said. Sa-Dhan pointed out that not extending the moratorium …

RBI Advisory On Loan Moratorium : Frequently Asked Questions
4 years, 8 months ago

RBI Advisory On Loan Moratorium : Frequently Asked Questions

Live Law  

On March 27, the Reserve Bank of India allowed Banks to declare a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital facilities. ANSWER: Last week, the Reserve Bank of India announced a three-month moratorium on all term loans outstanding as on March 1, 2020, as well as on working capital …

Over 70,000 businesses applied for gov't aid; bankruptcies skyrocket
4 years, 9 months ago

Over 70,000 businesses applied for gov't aid; bankruptcies skyrocket

NL Times  

Between 70 thousand and 80 thousand companies have applied for support at the coronavirus emergency desk since it opened on March 27, State Secretary Mona Keijzer of Economic Affairs said on talk show Op1. Keijzer stressed that the corona emergency desk is part of a much larger package of measures to support businesses through the coronavirus crisis. In the first …

Coronavirus | How will the three-month moratorium on EMIs impact customers?
4 years, 9 months ago

Coronavirus | How will the three-month moratorium on EMIs impact customers?

The Hindu  

The story so far: On March 27, the Reserve Bank of India slashed interest rates to counter the economic fallout of the coronavirus pandemic. It also announced other relief measures, which included permitting banks to provide a three-month moratorium on all term loans. Due to economic disruptions caused by the nationwide lockdown which has led to stress in the financial …

Coronavirus Outbreak: Bank of Baroda offers refund of March EMI to home, auto loan customers
4 years, 9 months ago

Coronavirus Outbreak: Bank of Baroda offers refund of March EMI to home, auto loan customers

Firstpost  

State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of the EMI that already has been deducted in March to meet any liquidity need during the disruption caused by COVID-19 pandemic Mumbai: State-run Bank of Baroda on Wednesday said it is offering retail customers the option of getting a refund of …

Coronavirus Outbreak: Most private banks go for 'opt-in' option on loan repayment moratorium
4 years, 9 months ago

Coronavirus Outbreak: Most private banks go for 'opt-in' option on loan repayment moratorium

Firstpost  

Most of the private sector lenders have decided to go for the “opt-in” option on loan repayment moratorium, putting the onus on the customer to take the initiative of informing the bank of their choice to go for the three-month breather offered by the Reserve Bank of India Mumbai: Most of the private sector lenders have decided to go for …

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later
4 years, 9 months ago

Coronavirus Outbreak: Borrowers unlikely to get significant gains from loan moratorium; banks to charge interest later

Firstpost  

The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according to the moratorium scheme announced by state-owned banks New Delhi: The three-month suspension of EMI payments may not result in a significant gains for borrowers as they will charge interest for the moratorium period, according …

Opt for EMI moratorium if there are cash flow problems: experts
4 years, 9 months ago

Opt for EMI moratorium if there are cash flow problems: experts

The Hindu  

Banks have started rolling out three month moratorium on all term loans as announced by the RBI under the COVID-19 regulatory package. However, experts say borrowers should opt for it only if they face cash flow problems. This would be helpful for people who are facing cash flow problems like the self employed category. "If you don't face a cash …

Coronavirus Outbreak: PSU banks announce moratoriums on loan EMIs following RBI directive
4 years, 9 months ago

Coronavirus Outbreak: PSU banks announce moratoriums on loan EMIs following RBI directive

Firstpost  

Several reports have stated that despite the central bank’s guidelines, borrowers were receiving messages reminding them that their EMI is due. Syndicate Bank The bank has deferred EMIs of housing loans, vehicle loans, MSME loans and payment of all other term loans falling due after 1 March and up to 31 May, 2020 by three months. Indian Bank Indian Bank …

Coronavirus lockdown | Lenders ready with offer for EMI holiday
4 years, 9 months ago

Coronavirus lockdown | Lenders ready with offer for EMI holiday

The Hindu  

The Housing Development and Finance Corporation, the country’s largest mortgage lender, and some other lenders will reach out to customers and give them the option to skip equated monthly instalment for the next three months as announced by the Reserve Bank of India on Friday. The move will enable customers, particularly those who have opted for the electronic clearing service …

Coronavirus lockdown: RBI cuts repo rate, announces 3-month moratorium on loans, read details
4 years, 9 months ago

Coronavirus lockdown: RBI cuts repo rate, announces 3-month moratorium on loans, read details

Op India  

Speaking to the media on the unprecedented situation across the country due to the Chinese epidemic, RBI Governor Shaktikanta Das on Friday announced a massive 75 basis points cut in repo rates to 4.4 per cent as a measure to counter the economic slowdown caused by the COVID-19 pandemic. Addressing the effect of the coronavirus on markets, the RBI Governor …

Coronavirus news in brief: a round up of other stories
4 years, 9 months ago

Coronavirus news in brief: a round up of other stories

Dutch News  

A round up of other news about the impact of coronavirus on the Netherlands, and initiatives to alleviate problems. Bank loans Dutch banks have agreed to give small firms with loans of up to €2.5m a six months moratorium on paying back their debts. People facing trouble paying their mortgages can also approach the banks for a ‘suitable solution’ although …

Coronavirus news in brief: a round up of other stories
4 years, 9 months ago

Coronavirus news in brief: a round up of other stories

Dutch News  

A round up of other news about the impact of coronavirus on the Netherlands, and initiatives to alleviate problems. Bank loans Dutch banks have agreed to give small firms with loans of up to €2.5m a six months moratorium on paying back their debts. People facing trouble paying their mortgages can also approach the banks for a ‘suitable solution’ although …

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