[sunilch]

Originally Posted by 14000rpm

Layman's question - can anyone tell me what the default option at ICICI for opting in or out? I am having trouble with their site and I don't want to avail it.

I have keyed in my phone number and PAN but haven't submitted. Not sure if submitting means opting-in.

From what I have understood from the communication received - The link allows you to specify your option - OptIn or OptOut after you put in your details. However, if you do not do anything by default things will stay the way they are there. So your regular EMI will continue and there will be no change in your account.

[14000rpm]

Originally Posted by sunilch

So your regular EMI will continue and there will be no change in your account.

Thanks. Thats how I'd rather leave it.

[myavu]

Got this from SBI Credit Cards division today.

[civic-sense]

Originally Posted by sunilch

From what I have understood from the communication received - The link allows you to specify your option - OptIn or OptOut after you put in your details. However, if you do not do anything by default things will stay the way they are there. So your regular EMI will continue and there will be no change in your account.

My ICICI home loan EMI was due yesterday. Has not been debited so far. I haven't opted for the moratorium. Maybe they are giving us time to specify our option.

[sunilch]

Originally Posted by civic-sense

My ICICI home loan EMI was due yesterday. Has not been debited so far. I haven't opted for the moratorium. Maybe they are giving us time to specify our option.

Yesterday I can understand but ideally it should have got deducted today. Yesterday was Annual Bank Closing and many things were not allowed. Perhaps you should call up and clarify, if you don't want to opt-in.

[humyum]

Originally Posted by varunswnt

Attachment 1986895

This is daylight robbery. Look at the money that needs to be paid if you defer, is this called relief by any chance?

Relief would have been, 3 months EMI not to be paid, your EMI tenure will extended by 3 months, no change in anything, just 3 months more duration.

[Ithaca]

Ms Latha Venkatesh explains why we must not take the 3 month EMI mortarium if we are able to afford to make the payments.
She explains that the 3 months EMI will be added to your principal amount and either the term extended or rate of interest increased.

She also mentions at approx 3 minutes that you need to inform your bank that you are not availing the mortarium because the default option is that the bank / lending institution assumes that you are taking the mortarium. Hence you need to call up or go to the website and refuse the mortarium if you can afford to.

Do read & watch the video embedded in the article.

If you have five years of residual EMIs, and you are paying around 50,000 per month, your repayment to the bank goes up by Rs 1 lakh.
At the end of the spectrum, if you have just begun your 20-year home loans, at Rs 50,000 per month, availing the moratorium costs you Rs 7.5 lakh.
Short point, the moratorium comes at a cost. Avail of it only if absolutely necessary.

Source Do not avail moratorium if you have the cash

[Warwithwheels]

Here’s an excellent tool to calculate the exact impact of the moratorium availed.

EMI_Loan_Calculator_and_Impact_assessement_v2 copy.xlsx

All you need to do is just input your loan amount, interest and balance tenor. And also the no of EMIs you’d like to defer.

[SilentEngine]

I have home loan with Axis bank. As per communication received, there are two categories of loans, and the default option is different for both.

From what I could understand, home loan is under second category where default option is OPT-OUT and one needs to OPT-IN to avail the moratorium. I am contemplating whether to avail or not, given that I only have few months of loan term left.

https://www.axisbank.com/avail-moratorium-on-bank-emi

Originally Posted by Ithaca

She explains that the 3 months EMI will be added to your principal amount and either the term extended or rate of interest increased.

I don't think rate of interest will increase, nor is it correct that entire EMI will be added.
If one avails moratorium, Interest will be computed on outstanding and will be added to the principal which increases the overall principal amount. After this, two things can happen:
1. Increase in loan tenure (because of moratorium period and increase in principal)
2. Increase in EMI if one wants to keep the tenure same

Copying example from Axis bank link above:

Ms. B has a term loan of Rs. 25 lacs at 9% rate of interest p.a., EMI of Rs 22,493 for 240 months. Her Principal outstanding after 12 months as of March 31st 2020 is Rs. 24,53,182. If she avails 2 months moratorium for the months of April 2020 and May 2020, then principal outstanding from June 2020 would be Rs. 24,89,949.

[fordday]

Anybody has loan from one bank and EMI debit happens from a different bank's account. Like I have SBI home loan and EMI gets debited from my Citibank account. I didn't do anything as I never wanted the moratorium.

My EMI date is 5th. As it was sunday, so today 6th my Citi account should have been debited, but it didn't.

Now what to do? Should I transfer the EMI amount to my SBI HL as NEFT? Anyone faced this problem?

Thanks.

[SoumenD]

Originally Posted by fordday

Anybody has loan from one bank and EMI debit happens from a different bank's account.

Same issue here. My home & car loan EMI date is 5th of every month but its still not deducted. I just spoke to my bank's manager. Apparently 6th also was a bank holiday. Probably that's why its delayed. As per him if you have not opted specifically for Moratorium, EMIs will be deducted by default. This is for SBI.

So you might want to wait till tomorrow before making any transfers.

[fordday]

Originally Posted by SoumenD

So you might want to wait till tomorrow before making any transfers.

Many thanks SoumenD. What a relief your reply gave, in this confusing times.

I see that my EMI is debited today.

[karan0009]

Moratorium option should be for all: RBI

The Reserve Bank of India (RBI) on Monday reached out to several banks and non-banking finance companies to say that borrowers should be considered ‘under moratorium by default’ regardless of their opting-in or otherwise

.

The regulatory instruction, conveyed through emails, is very different from what many lenders have decided to follow.

Many banks are offering the option to defer the payment of loan interest and principal only to borrowers who specifically ask for it. “But, according to RBI, it’s just the opposite. The 3-month moratorium should be given to all unless a borrower informs the bank or NBFC that he/she is not interested in availing the facility,”

I guess no we need to instruct our banks that we want the EMI to hit our account if we don't want to opt out of Moratorium.

https://economictimes.indiatimes.com...w/75017753.cms

[wheelguy]

Originally Posted by Warwithwheels

It is only an EMI Holiday and not an interest holiday. The interest will be charged to your loan account at the end of the month as usual. Just that you can opt out to pay the EMI and still have no impact on your credit history.

To put it in lay man terms, say you borrow INR 1,00,000 @ 10% interest for 1 years, the following will be the impact:

The impact would be approx Rs. 2,300/- for a loan amount Rs. 1,00,000/- @10% for a tenure of 1 year

Thanks for putting it out in layman terms.

This moratorium thing basically boils down to two options:

1. Keep paying the EMI's as usual.
2. Can't pay now? Okay pay it later, but with an additional accrued interest.

But thanks to advocate Amit Sahni, he made a Plea in SC challenging RBI regarding the same - Link

The plea, filed in the apex court by advocate Amit Sahni, has alleged that the RBI circular is an "eyewash as it provides that the interest shall be chargeable during the moratorium period and it makes no sense in paying additional interest along with the regular EMIs".

It sought a direction to the Centre and the RBI to clarify that any interest and accumulated interest on outstanding amount shall not be charged from the borrower for the moratorium period by any bank and financial institution.

It also sought directions to the government and the RBI to "appropriately consider extending the moratorium period for certain period so as to enable millions of persons, who may get unemployed due to COVID-19 health emergency for some time even after lockdown".

"The purported relief proclaimed to have been given by the respondents (Centre and RBI) vide circular dated March 27, 2020 is incomplete as the same does not provide interest relaxation to citizens and those who avail moratorium of three months shall have to pay interest on the same subsequently," the plea said.

[ast.ggn]

Originally Posted by wheelguy

But thanks to advocate Amit Sahni, he made a Plea in SC challenging RBI regarding the same

It should have been like this from start itself. Current moratorium proposal is nothing but an eyewash and source of additional income for banks. Imagine a person who has taken a home loan and ends up losing his job during this period. It will be a double whammy for him.