State Bank of India has decided to extend the moratorium on loan accounts of all eligible customers by another three months without waiting for their request, the country's largest lender said in a press release. The Reserve Bank of India last week extended the moratorium on loans for another three months in order to provide relief to borrowers amid COVID-19 outbreak.
The bank has also proactively reached out to all its eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) for EMIs falling due in June, July and August 2020, SBI said.
State Bank of India has simplified the process of stopping the EMIs by initiating an SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs.
Here is how to defer SBI loan EMI:
The borrowers have to reply with a YES to a designated virtual mobile number (VMN) mentioned in the SMS sent by the bank within 5 days of receiving the SMS, if they wish to defer the EMIs, SBI added.
In a major relief to borrowers, the Reserve Bank of India (RBI) had on Friday extended the moratorium period for the repayment of loans by another three months till August to help them beat the income disruption caused by the COVID-19 crisis.
In March, the central bank had allowed a three-month moratorium on repayment of all term loans due between March 1, 2020 and May 31, 2020.
As a result of this moratorium, individuals' equal monthly instalment (EMI) payments of loans will not be deducted from their bank accounts, providing much needed liquidity to borrowers whose income has been disrupted due to the lockdown till May 31.