• SBI Personal Loan COVID-19 Moratorium

    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, State Bank of India (SBI) has also rolled out the benefits under the moratorium through which sbi 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 SBI COVID-19 Moratorium

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

    • A customer can choose to opt out of the moratorium program as per his or her convenience as the moratorium is not compulsory.
    • If a customer opts for the moratorium, the bank will not ask for the EMI payments which are due till 31 August 2020.
    • The loan repayment period will be extended for the customer depending on the moratorium period which is availed by the customer.
    • SBI is also offering its customers the facility to get the amount refunded for EMIs which have already been paid. However, this facility will be subject to the discretion of the bank.

    SBI Personal Loan EMI Moratorium Eligibility

    The eligibility criteria for the SBI Personal EMI Moratorium are as follows:

    • All the SBI Personal Loan customers who have availed a loan before 1 March 2020 are eligible for the EMI moratorium.
    • The bank will also consider other cases wherein there have been overdues on EMI payments prior to 1 March 2020. However, in such cases, the decision will be taken by the bank in regard to the offering to the moratorium.

    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 you if you opt for the moratorium:

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

    • Loan amount – Rs.5 lakh
    • Rate of interest – 12% p.a.
    • Actual loan repayment period – 5 years or 60 months
    • Number of EMIs already paid – 10 months
    • Remaining loan repayment tenure – 50 months
    • Moratorium availed for 6 months (1 March 2020 to 31 August 2020)

    Scenario – 1

    When you do not avail the Personal Loan EMI Moratorium

    • Total interest to be paid on the loan amount – Rs.1,67,333
    • Total amount which needs to be paid to close the loan – Rs.6,67,333

    Scenario – 2

    When you avail the Personal Loan EMI Moratorium

    • Total interest to be paid on the outstanding loan amount – Rs.1,67,333
    • Accrued interest amount for the moratorium period – Rs.47,778
    • Total amount which needs to be paid to close the loan – Rs.7,15,111

    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.47,778.

    How to apply for SBI Personal Loan EMI Moratorium?

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

    1) Offline:

    Call the customer care numbers of SBI and inform the executive about your requirement. The call should be made from the registered mobile number. Alternatively, you can visit the nearest branch office and submit a request as per Annexure – I.

    2) Online:

    You can visit the official website of SBI 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.

    Alternatively, you can also avail the moratorium option by sending an SMS reply. For standing instruction (SI), you can send <YES> to VMN. For NACH, you can reply with <STOP XXXX> to VMN, wherein ‘XXXX’ is the last 4 digits of your loan account. The SMS has to be sent within 5 days from the date of receipt of the SMS from the bank.

    It is clear that when you avail the EMI moratorium, you will have to pay a significant amount of additional interest. If you are able to make the payments as per the usual loan repayment schedule, try to avoid the moratorium as it will save you a lot of money. However, if you feel that you have a cash crunch and the cash flow is disrupted, you can consider availing the moratorium for EMI payments.


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