After the Reserve Bank of India (RBI) allowed commercial banks to provide their borrowers with a period of three months moratorium for repayment of their loans, public and private sector banks have come into action and are informing their customers about the option available to them.

RBI had also said that the moratorium on the term loans and deferment of interest payment would not result in asset classification downgrade.

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Keeping the RBI’s decision in view, majority of the banks that have announced moratorium took to twitter to inform their respective borrowers. Here is what they all said.

State Bank of India (SBI):

India’s largest lender said that it has initiated steps to defer the instalments and interest or EMIs on Term Loans falling due between March 1 to May 31, of the ongoing year.

Punjab National Bank (PNB):

The bank said that the relief scheme is applicable on all instalments on term loans and recovery of interest on cash credit facilities falling due between March 01 to May 31.

Canara Bank:

The bank is giving relief to borrowers of Term Loans falling due from March 01 to May 31. The bank is also providing collateral and margin free loans up to Rs 20 lakh to SHGs with immediate effect.

Bank of Baroda:

The Bank said, “BankofBaroda is providing a moratorium of 3 months on payment of all instalments falling due between 01.03.20 & 31.05.20 for all term loans including Corporate, MSME, Agriculture, Retail, Housing, Auto, Personal loans, etc. in pursuance of the RBI COVID-19 Regulatory Package.”

Axis Bank:

“At a time when the nation is facing unprecedented challenges due to COVID-19, we extend our support by offering moratorium on payment of EMIs/instalments and interest on Term Loans/Credit Card dues, and/or deferment of interest payments on Working Capital facilities,” the bank said in a tweet.

HDFC Bank:

HDFC is offering the moratorium on Term Loans falling between March 01 and May 31.

ICICI Bank:

The bank on Twitter said, “In line with RBI’s #Covid19 relief package, #ICICIBank offers its customers a choice of either paying towards their loans/credit facilities or opting for a moratorium till May 31, 2020. Customers are requested to visit http://icicibank.com to specify choice.”

IDBI Bank:

The private bank said it “extends moratorium on Term Loan instalments/interest and deferment of interest on working capital loans of borrowal accounts impacted due to COVID 19 for 3 months”and customers who are willing to pay their instalments are allowed to make the payment as per the existing schedule.

Apart from the above-mentioned banks, there are a host of state-run banks, which control over two-thirds of the system, have also gone for an option where the repayments automatically get deferred unless a customer informs of his willingness to pay.

It is worth noting that the option of deferment is aimed to give relief to those who are adversely affected by the COVID-19 pandemic. Those who can afford to make the payments for EMIs against their loans then they should pay their dues to avoid the interest carried forward for this moratorium period.

Experts have already made it clear that this is not an interest waiver, but a deferment of payments, meaning the additional interest costs will have to borne by the customers.