Monday 1 March 2021
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Loan moratorium extended: Here’s how to avail the facility

ICICI Bank said loans availed from 1 March, 2020 to 31 May, 2020 are not eligible for the moratorium, since they have been availed

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Economy Loan moratorium extended: Here's how to avail the facility

The Reserve Bank of India last month extended the moratorium granted on loan repayment by another three months till 31 August, keeping in view the extension in lockdown. With this extension, borrowers can now avail six-months moratorium on loan repayment from 1 March, 2020 to 31 August, 2020.

Many customers have been anxiously waiting for the details on how they can avail of the extension on EMI moratorium. They wonder whether it will be automatic for those who have already opted for EMI moratorium or they will have to apply for it again. They ask if those who haven’t applied for it earlier can opt for it now. Most banks have shared the details on their respective websites and mobile applications. Here is what you need to do in case you are a customer of one or more of these banks.

Loan from State Bank of India

SBI has given an option to all its eligible borrowers to opt for the moratorium by giving their consent to stop their Standing Instruction (SI)/NACH mandate for the EMIs falling due between 1 June, 2020 and 31 August, 2020. SBI customers can give their consent for the moratorium by simply sending an SMS from their registered mobile number to a particular number.

SBI customers can opt for the moratorium in the following way
Standing Instruction (SI): SMS Reply to VMN within 5 days from the receipt of SMS.
NACH: SMS Reply , (1234 is the last 4 digits of their loan A/c no) to VMN within 5 days from the receipt of SMS.

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In this case, interest will accrue on the outstanding portion of the loan and the bank will recover that later.

If you are not interested to opt for the moratorium then no action is required. you may continue to pay in usual course. If you are an SBI loan holder and have not received this SMS then your number is probably not updated in the bank’s record.

Loan from ICICI Bank

ICICI Bank customers can apply for the moratorium for June only right now. If you want to extend it further you will have to reapply for July and August. You need to apply five days before the date on which your EMI is due. If you apply within less than five days, your EMI may be deducted. However, you will be refunded the amount in the next seven working days if you apply for the moratorium in that month. The last day for applying for the moratorium for 24 June. You can apply for the extension on the bank’s website or through links sent on email or SMS by the bank.

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ICICI Bank said loans availed from 1 March 2020 to 31 May 2020 are not eligible for the moratorium since they have been availed on the basis of the current evaluation of the customer’s cash flows.


All HDFC Bank customers who have availed of retail instalment loan or any other retail credit facilities prior to 1 Mar, 2020 are eligible for the moratorium. The decision to offer a moratorium to a customer will be at the sole discretion of the bank, HDFC Bank said on its website.

Customers having overdues prior to 1 Jun, 2020 may also opt for the moratorium, and their requests shall be considered by the bank based on its merits.

If you have already chosen for moratorium for March to May, then the same will not continue for June to August.

You will have to make a fresh application on the link provided to register for the moratorium facility for the period of Jun-Aug 2020.

How can HDFC customers opt for the moratorium? You can opt for the moratorium by clicking on the link shared with you by the Bank through SMS or e-mail. You may also visit the Bank’s website to know details.

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