Axis Bank Personal Loan COVID-19 Moratorium

The relief measures which have been extended for customers by Axis Bank can be summed up as follows:

1. A customer can choose to opt out of the moratorium program as per his or her convenience as the moratorium is not compulsory.
2. If a customer opts for the moratorium, the bank will not ask for the EMI payments which are due till 31 August 2020.
3. The loan repayment period will be extended for the customer depending on the moratorium period which is availed by the customer.
4. The credit score and credit history of the customer will not be affected as the deferment in the payments of the EMIs will not be considered as defaults.

Eligibility for Axis Bank Personal Loan EMI Moratorium

The eligibility criteria for the Axis Bank Personal EMI Moratorium can be listed as follows:

1. All the Axis Bank Personal Loan customers who have availed a loan before 1 March 2020 are eligible for the EMI moratorium.
2. A customer can also avail the benefit for the payments which fall due prior to 1 March 2020. However, these cases are subject to the discretion of the bank and will vary from case to case.
3. The moratorium extension of 3 months starting 1 June 2020 till 31 August 2020 can be availed by the customers even if they have availed the previous moratorium of 3 months.

Example for EMI Moratorium

As per the directives of the Reserve Bank of India (RBI), the EMI moratorium will accrue interest on the outstanding loan amount for the entire period. Let us take an example to understand how it is going to affect if you opt for the moratorium:

Discussed below are two scenarios on the basis of the following information:

1. Loan amount - Rs.3 lakh
2. Rate of interest - 15% p.a.
3. Actual loan repayment period - 2 years or 24 months
4. Number of EMIs already paid - 3 months

1. Remaining loan repayment tenure - 21 months
2. Moratorium availed for 6 months (1 March 2020 to 31 August 2020)

Scenario - 1

When you do not avail the Personal Loan EMI Moratorium

1. Total interest to be paid on the loan amount - Rs.49,104

1. Total amount which needs to be paid to close the loan - Rs.3,49,104

Scenario - 2

When you avail the Personal Loan EMI Moratorium

1. Total interest to be paid on the outstanding loan amount - Rs.49,104
2. Accrued interest amount for the moratorium period - Rs.27,564

1. Total amount which needs to be paid to close the loan - Rs.3,76,668

From the above example, you can see that in case the moratorium is availed for a period of 6 months, the additional interest amount that you will have to pay is Rs.27,564.

How to apply for Axis Bank Personal Loan EMI Moratorium

To apply for the Axis Bank Personal Loan EMI Moratorium, a customer can follow any one of the following methods:

1) Offline:

Call the customer care numbers of Axis Bank and inform the executive about your requirement. The call should be made from the registered mobile phone number.

Alternatively, you can send a reply with your choice to avail the moratorium to the message which is sent by the bank to your registered mobile phone number.

2) Online:

You can visit the official website of Axis Bank and choose the option to avail the EMI moratorium in relation to your loan account. You will be required to authenticate the same by using your registered mobile phone number and generating an OTP.

If you have multiple loan accounts, you will be required to choose the accounts for which you want to avail the moratorium and proceed to submit the request.

As seen in the calculation above, it is clear enough that you will be required to pay a significant amount of additional interest if you avail the moratorium. If you are able to make the payments as per the usual loan repayment schedule, try to avoid availing the moratorium as it will save you a lot of money.

However, as per the need of the moment, if you feel that you have a cash crunch and the cash flow is not enough for you to keep rolling the EMI payments smoothly, you can consider availing the moratorium for EMI payments.

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