[abhi7013]

Originally Posted by Warwithwheels

It is only an EMI Holiday and not an interest holiday.

Am not too sure about this statement. Apologies as i don't have sources that explicitly say that interests will not be charged. It would help if we can get sources that have something concrete to say about the interest charges. Till then, it's left upto what sources we read. What i read explicitly said there would be no interest charges for these 3 months and the amount to be paid (principal + interest) wouldn't change.

However if it is as you say, then it's little help for most of the borrowers.

[speedmiester]

Well SBI is implementing automatic deferral of all EMIs without any customer having to opt in.


All EMIs on term loans automatically suspended for 3 months, clarifies SBI chief Rajnish Kumar

[Col Mehta]

Originally Posted by speedmiester

Well SBI is implementing automatic deferral of all EMIs without any customer having to opt in.


All EMIs on term loans automatically suspended for 3 months, clarifies SBI chief Rajnish Kumar

Thanks for sharing this important piece of information. And just to clear the air for a few members, the SBI won't consider the credit card dues to be a part of the 3-month moratorium as they are not part of term loan. However, all retail loans including EMIs will be covered - per SBI chief Rajnish Kumar.

[anandhsub]

The RBI notification clearly says interest will be charged for the 3 month period. I have to contact my bank and make sure they are processing the EMI.

https://m.rbi.org.in/Scripts/Notific...d=11835&Mode=0

Attaching the relevant portion below

[abhi7013]

Originally Posted by anandhsub

The RBI notification clearly says interest will be charged for the 3 month period. I have to contact my bank and make sure they are processing the EMI.

https://m.rbi.org.in/Scripts/Notific...d=11835&Mode=0

Attaching the relevant portion below
Attachment 1984688

And here's an excerpt that says no interest will be charged during this period:

'"The moratorium on housing EMI's and deferment of interest payments by three months will give a lot of relief to consumers as they can now rearrange their finances. Loans, on the whole, will be cheaper and consumers can save money owing to the measures.* Banks will now be persuaded to lend at lower rates of interest and this will put more money in the hands of people and create a higher demand in the overall economy as consumption would go up," Surendra Hiranandani said.'

Link: https://www.indiatvnews.com/business...oan-emi-602015

The interests have also been deferred. It would be better if you consult with the banks in which the loans have been taken.

As i said in my earlier post, banks will voluntarily defer the EMI for three months and there will be no interest charged. In case any bank is charging interest, it's better to either not opt for the deferment or escalate the issue.

[rdst_1]

Originally Posted by abhi7013

The interests have also been deferred. It would be better if you consult with the banks in which the loans have been taken.

https://m.hindustantimes.com/busines...mpression=true

It seems to me that, since the wording is not clear, you seem to have mistaken deference of interest payments of Overdraft accounts to be the deference of actual interest.

The RBI has made amply clear that interest will be charged for this 3 month moratorium. If one has an Overdraft account, they have to pay the interest at end of every month, and the payment of that interest is what has been deferred, not the actual interest. After the 3 month period, even they will have to pay off that amount.
Also, everyone knows of the bad health of our banks and they can't afford to not charge interest from loanees when they still have to pay the depositors interest for their deposits.

[abhi7013]

Originally Posted by rdst_1

The RBI has made amply clear that interest will be charged for this 3 month moratorium.

In that case, shouldn't customers be contacted instead of automatically deferring EMI? Like me, there maybe others who wouldn't be in the know and end up paying more interest. Also, the bank i contacted - BoB, said they will inform me by Tuesday regarding their stand.
Thanks for sharing the link, clears things out pretty much!

[Warwithwheels]

Clarification from CRED regarding CC dues!

[m8002?]

Anyone aware of the reduction in home loan rates for their loans? Or its the usual way of banks just ignoring the reduction in the interest rates? My rate has been steady for the last 1 year while the RBI has reduced rates by more than 1%.

[Warwithwheels]

Originally Posted by m8002?

Anyone aware of the reduction in home loan rates for their loans? Or its the usual way of banks just ignoring the reduction in the interest rates? My rate has been steady for the last 1 year while the RBI has reduced rates by more than 1%.

Basically there are 2 types of Home loans at SBI/ Other major PSU Banks. One is MCLR based loan and the other is External Borrowing Rate (EBR) Based loan. For SBI the external benchmark is Repo rate which is now being cut.

For EBR Based loan, the base rate was 7.80% (after adding their risk premium) which has now become 7.05%. Meaning all those customers who had availed loans based on EBR would directly benefit from the rate cut. Typically the housing loans would now start from EBR + .10 bps i.e 7.15% for loans under INR 30 Lacs. This will become effective from next calendar quarter i.e 1st April 2020.

For MCLR Based loans, the reduction is not straightforward. Decision on MCLR will be taken when the ALCO meets in April’20.

Am not very sure how private banks like HDFC, AXIS etc., are pricing their products.

SBI passes on entire 75 bps Repo rate cut to its borrowers
Mumbai – March 27, 2020: Responding to RBI’s extraordinary monetary policy measures to support the wider economy, SBI passes on the entire 75 bps Repo rate cut to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR). With this revision, SBI’s EBR & RLLR come down by 75 bps, w.e.f 01st April’ 2020 as under:
ü EBR reduced to 7.05% p.a from 7.80% p.a.
ü RLLR reduced to 6.65% p.a from 7.40% p.a,
Consequently, EMIs on eligible Home Loan accounts (linked to EBR/RLLR) get cheaper by around Rs 52 per 1 lakh on a 30 year loan.

Source: https://www.facebook.com/notes/state...5251563525620/

[Trojan]

This is a classic case of Capitalist mindset hindering/hampering Humanitarian efforts.

If read and understood in spirit, it is all but clear what the RBI intends to achieve by allowing this EMI holiday, but the banks prefer to play the fool and are searching for verbatim and legalities therein to confuse customers, scare people and eventually turn out the winner.

They miss the point that humanity is the overall loser here.

All major banks can afford to implement this scheme but they chose to play around with words.
If interest needs to be charged so be it, it can also be Simple Interest which should be the norm during times of such calamities but no they are calculating Compounding interest on outstanding amount.

Lack of empathy and shamelessly making money during a time of crisis.

[Warwithwheels]

SBI has done it. Their website reflects the latest rates



https://www.sbi.co.in/web/interest-r...-rates-current

[m8002?]

Hopefully other banks follow the lead by SBI.

https://www.rediff.com/business/repo...s/20200331.htm

The article above says that most banks are coming up with excuses for the EMI moratorium.

[ast.ggn]

Link to IDBI website and well explained FAQ, it is quite clear:

https://www.idbibank.in/faq-covid-installment.asp

Screenshot from their twitter handle:

[Turbanator]

Originally Posted by ast.ggn

Link to IDBI website and well explained FAQ, it is quite clear

Thanks, so it’s automatic like what SBI is doing ( heard on TV). Have the announced what will be ROI in the delayed EMi? Will it be same like existing and they simply change the loan period ?