Thursday 28 October 2021
- Advertisement -
HomeEconomyBusinessSBI gives COVID relief to customers: No EMI for 3 months

SBI gives COVID relief to customers: No EMI for 3 months

'Responding to RBI’s extraordinary monetary policy measures to support the wider economy, SBI passes on the entire 75 bps repo rate cut to its borrowers,' India's largest public sector bank said in its press release


If you are repaying a retail loan from the State Bank of India (SBI), there is some relieving news for you. You will not have to pay EMI against the loan for the next three months, chairman of the largest public sector bank Rajnish Kumar has assured.

The chairman said that the bank has postponed three equated monthly instalments (EMI) of the borrowers. The customer does not need to apply to the bank for this relaxation.

The chairman clarified that in the event of non-payment of EMI payment for three months, the credit score of customers will not be affected.

However, there is no relief as yet on the credit card repayments you may owe to SBI.

RBI advised SBI, other banks

On Friday morning, the Reserve Bank of India (RBI) had advised the banks up to three months relief in EMI for loan repayers — in view of people’s financial woes during the 21-day lockdown Prime Minister Narendra Modi had announced recently.

However, the RBI has not made it mandatory. is the first bank that has given relief to customers. Now the pressure is on other government and private banks to postpone the EMI demand from customers for three months.

Will EMI burden increase after 3 months?

No. It is possible that banks will increase the number of your monthly instalments. You may alternatively go for a one-time settlement of any amount that is due. You will have between six and nine months to go for the one-time settlement.

The statement of RBI suggests other types of retail or consumer loans are included in the relief package. Apart from EMIs against a home loan, those for personal loans, educational loans, car loans, etc also stand postponed. The situation regarding business loans is unclear.


The today issued a press release, making the announcement. It reads:

“Responding to RBI’s extraordinary monetary policy measures to support the wider economy, passes on the entire 75 bps repo cut to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR). With this revision, ’s EBR & RLLR come down by 75 bps, with effect from 1 April 2020 as under:

  • EBR reduced to 7.05% per annum from 7.80% per annum
  • RLLR reduced to 6.65% per annum from 7.40% per annum

Consequently, EMIs on eligible Home Loan accounts (linked to EBR/RLLR) get cheaper by around Rs 52 per 1 lakh on a 30-year loan.

In view of adequate liquidity in the system and the additional liquidity measures announced in today’s monetary policy, realigns its interest structure on Deposits with effect from 28 March 2020:

  • Retail TD interest rates reduced by 20 bps to 50 bps across tenors
  • Bulk TD interest rates reduced by 50 bps to 100 bps across tenors

The decision on MCLR will be taken when the ALCO meets in April’20. The impact of recent RBI policy measures and reduction in the Bank’s deposit rates will be reflected in the next review of MCLR.”

Sirf News needs to recruit journalists in large numbers to increase the volume of its reports and articles to at least 100 a day, which will make us mainstream, which is necessary to challenge the anti-India discourse by established media houses. Besides there are monthly liabilities like the subscription fees of news agencies, the cost of a dedicated server, office maintenance, marketing expenses, etc. Donation is our only source of income. Please serve the cause of the nation by donating generously.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -