In light of the recent pandemic virus breakout and the nationwide lockdown in India, the Reserve Bank of India (RBI) has announced certain relief measures to help customers cope with the present economic crisis. As per the directives from the central bank of India, banks and financial institutions have been directed to extend an EMI moratorium for 6 months to its customers. Following the directives, Axis Bank has also rolled out the benefits under the moratorium through which personal loan customers of the bank can avail the deferment of the EMI payments for any instalment which falls due between 1 March and 31 August 2020.
Relief Measures under the Axis Bank COVID-19 Moratorium
The relief measures which have been extended for customers by Axis Bank can be summed up as follows:
The eligibility criteria for the Axis Bank Personal EMI Moratorium can be listed as follows:
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:
Scenario – 1
When you do not avail the Personal Loan EMI Moratorium
Scenario – 2
When you avail the Personal Loan EMI Moratorium
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.
To apply for the Axis Bank Personal Loan EMI Moratorium, a customer can follow any one of the following methods:
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.
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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