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Retail Term Loans: Moratorium Update June 2020 – August 2020

Frequently Asked Questions – Term Loans – Moratorium for Retail Term Loans under COVID-19 regulatory package

In line with the package announced by the RBI, we had offered customers an EMI moratorium for term loans till May 2020. With the RBI further announcing extension of the moratorium till August 2020, we are now offering our Term Loan customers a Moratorium for the period June – August 2020. We request you to refer to the below FAQs to better understand the offering.

Through these relief measures, we endeavour to help you to focus on the well-being of yourself and your family in this challenging situation.

  1. What is Moratorium?
    Moratorium is the temporary deferment of payment of EMI (equated monthly Instalments) for a fixed tenure. It is not to be construed as a waiver of interest or any other rights of the Bank under the agreed terms and conditions.
  2. What is the moratorium period as per extension announced by the Reserve Bank of India?
    Moratorium is granted for 3 [Three] months, for all loans/facilities falling due for payments between June 1, 2020 and August 31, 2020.
  3. Will the interest accrue during the moratorium period?
    Interest shall continue to accrue on the outstanding portion of the loan availed during the Moratorium Period and will be followed by Interest capitalization of the accrued Interest.  The repayment schedule & the residual tenor for these loans will be accordingly shifted after the Moratorium period.
  4. As a customer of Standard Chartered Bank, how does this affect me?
    In case you have availed of a term loan facility from Standard Chartered Bank in the form of Housing Loan, Loan Against Property, Personal Loan, Business Instalment Loan and Guarantee Instalment Loan then, you are eligible for a moratorium period of 3 months on payment of instalments falling due between June 1, 2020 to August 31, 2020
    All customers who are Non- delinquent (no overdue EMI’s) as of  May 31, 2020 have been offered a Moratorium for the month of June 2020. If the client wishes to further avail a moratorium for July & August 2020, you must intimate the bank to avail the moratorium between June 15, 2020 to June 25, 2020 ( For more information refer to question 7 below).
    All customers who are delinquent (with 1 EMI overdue i.e. between 1 to 29 days past due) as of May 31, 2020 have the option to opt-in for moratorium from June to August by intimating the bank by June 10, 2020 to avail the moratorium (For more information refer to question 11 below).
  5. What can I do if I don’t want to avail of moratorium for the month of June 2020?
    If you do not want to avail the moratorium for the month of June 2020 then you may opt out latest by June 10, 2020 by sending an SMS: OPTOUT space <<your loan account number>>  to 8693800500 from your registered mobile number, failing which your EMI would not be presented for payment as per the regular EMI due date.
    Kindly note:
    In case you send your OPT OUT SMS at least 5 days before your regular EMI cycle due date then your June EMI would be presented on the regular EMI cycle due dateHowever, if you send the SMS within 5 days of your June 2020 EMI (<5 days) or after your EMI due date has already passed, then your EMI would be presented on special cycle date in June which would be intimated to you on your registered mobile number accordingly.
  6. Is there a cut-off date to send the SMS for opting out of June moratorium?
    Yes, the opt-out SMS must be sent to us by 10th June 2020.
  7. How do I opt in for the month of July & August 2020?
    All customers who have Non- delinquent (no overdue EMI’s) as of May 31, 2020 can choose to avail the Moratorium for July & August 2020 by sending an SMS: OPTIN space <<your loan account number>> to 9987123123 from their registered mobile number between June 15, 2020 –June 25, 2020 to avail the moratorium. You will receive a confirmation via SMS on your registered mobile number accordingly.
  8. Is there a cut-off date to send the SMS for opting in for the moratorium for the month of July & August 2020?
    Yes, the opt-in SMS must be sent to us between June 15, 2020 to June 25, 2020.
  9. I want to apply for moratorium for the months of June to August 2020 now? Is it possible?
    As per the bank’s process, you cannot apply for a moratorium from June 2020 to August 2020 in one go.
  10. If the customer has chosen to opt-out for Moratorium 1.0 (March to May 2020), will he be eligible for the June to August 20 moratorium?
    The customers who have opted-out for Moratorium 1.0 for the period March – May 2020 and have no overdue EMI as of May 31, 2020 have not been extended moratorium for June 2020. Hence their EMI shall be presented in June 2020 as per the regular cycle.
    However, they can choose to avail moratorium for the month of July 2020 and August 2020 by sending an SMS: OPTIN space <<your loan account number>> to 9987123123 from their registered mobile number between June 15, 2020 – June 25, 2020.
  11. Can a customer with only one EMI overdue opt for Moratorium for June – August 2020?
    Cases which are delinquent (with 1 EMI overdue i.e. between 1 to 29 days past due) as of May 31, 2020 have the option to opt-in for moratorium by sending an SMS: OPTIN space <<your loan account number>> to 8693800500 from their registered mobile number to the bank by June 10, 2020 to avail the moratorium.
    Kindly Note:
    In case they send their OPTIN SMS at least 5 days before their regular EMI cycle due date then they can avail moratorium from June to August 2020
    If they send the SMS within 5 days of their June 2020 EMI (< 5 days) or after the EMI due date has passed, they can avail moratorium for July and August 2020 only. Further their June EMI would be presented on the regular EMI cycle due date.
  12. If the customer has not availed moratorium period for July 2020 & August 2020 but misses his Emi payment in July 2020 what will happen?
    Eligible customers who have not availed moratorium period for the month of July 2020 & August 2020 but   fail to honour their EMI repayment for the month of July 2020 then, moratorium period for July 2020 and August 2020 shall be deemed applicable to such customers.  This shall not be applicable if an eligible customer who has not availed moratorium period for July 2020 & August 2020 fails to honour EMI repayment obligation for the month of August 2020 and it will be considered as a breach of agreed terms of the facility.
  13. What can I do if I erroneously send a wrong account number in my opt-out / opt-in message?
    The opt-out / opt-in message needs to be resent with the correct Loan account number via the bank registered mobile number only before the specified cut-off date:

    • Non-delinquent accounts as of May 31, 2020 – June 10, 2020 for Opting Out of June Moratorium and June 25, 2020 for Opting In for July 2020 -August 2020
    • Delinquent accounts as of May 31, 2020 – June 10, 2020 for Opting In for June-August Moratorium
  14. Will I get a single SMS communicating the moratorium on the Term Loan(s)?
    Bank shall send SMS with last 4 digits of the loan account number, confirming moratorium period availed by a customer for each term loan independently.
  15. Can I opt-out / opt-in of multiple SCB term loans with a single SMS?
    No, For each term loan customer has to send separate SMS to the Bank conveying intention to opt-out or opt-in.
  16. Do I need to pay any fees if I avail of this moratorium?
    No, the Bank is not levying any fees for opting in for deferred EMI payments during the Moratorium Period.
  17. Since the Term Loan instalment are not to be paid during the moratorium period, how will the loan be adjusted?
    During the Moratorium Period, Interest shall continue to accrue on the outstanding portion of your term loan. The Interest accrued will be added to the outstanding loan amount and the repayment schedule & the residual tenor for these loans will be accordingly shifted after the Moratorium period.
  18. Will the regular repayment instruction pertaining to the instalment(s) debit my bank account during this period?
    In-case your loan is on moratorium, then we will not be presenting your EMI on its due date across all repayment channels including debiting your loan account. Kindly note, post the moratorium period the EMI’s will be presented on the due dates.
  19. Will I be charged with any penalty or late payment fees for non-payment of EMIs during the Moratorium Period?
    Incase your loan is on moratorium, then we will not be charging any penalty or late payment fees for non-payment of EMIs.
  20. Will the seeking of the moratorium by the borrower have an impact on their credit/bureau score?
    No, it will have no adverse impact on the credit history of the customer/borrower. This is because the deferred interest payment during the moratorium period does not qualify as default for reporting purposes to credit bureaus by the Bank. However, any delay in payments of dues/ outstanding amounts payable (by customers who availed the moratorium) after the expiry of the moratorium, will impact the credit bureau score of the borrower.
  21. Can I make partial payment of the loan during the Moratorium Period?
    Partial payment of EMIs is allowed during the Moratorium Period only if you expressly communicate to the Bank your intention to not avail the benefit granted under the Moratorium Period.
  22. Can I foreclosure the Loan facility during the moratorium period?
    You may foreclose the loan as per the applicable terms and conditions during the moratorium period only if you expressly communicate to the Bank your intention to not avail benefit granted under the moratorium period.
  23. Can I make an EMI payment even during the moratorium period?
    Yes, you can make an EMI payment during the month in which your loan is in moratorium. You can pay the same by depositing it in the branch or intimating the bank to present your EMI even though you avail the extended moratorium. In such cases the EMI would be presented on special cycle dates which would be intimated to you on your registered mobile number accordingly.
  24. If a customer is currently availing of the Pre-Emi scheme or if the last Emi is due by August 2020 can he avail of this moratorium?
    No, this moratorium period is only applicable to clients who are servicing full EMIs on the Term Loans with SCB and not expiring on or before August 31, 2020.