Canara Banks Provides COVID 19 – RBI Package for Term Loans
To support the COVID 19-RBI package, Canara Bank offers its borrowers a moratorium/deferment of instalments for Term Loans falling due from 01.03.2020 to 31.05.2020, and extends repayment period accordingly. The bank has sent SMS to customers to avail the same.
The bank is also providing collateral and margin-free loans up to Rs. 20 Lakhs to Self Help Groups (SHGs) with immediate effect to help them overcome the impact of COVID-19.
RBI, through its press release on 27.03.2020 on COVID-19–Regulatory Package, had directly addressed the stress in financial conditions caused by the pandemic COVID-19. The policy statement by RBI explicitly mentions 3-months moratorium on term loans (including home loans, personal loans, education loans, auto and other loans having a fixed tenure), consumer durable loans (such as EMIs on mobiles, fridge, TV) and Credit Card dues, etc. The moratorium period of 3 months is for EMIs/Credit Card outstanding balance falling due between 01.03.2020 and 31.05.2020. The entire outstanding amount (applicable interest and charges during this period) has to be paid as per the June 2020 payment due date.
Who is eligible for a moratorium?
Any customer of Canara Bank is eligible for the moratorium except for staff and Ex-staff of Canara Bank.
Is this a waiver or a deferment of EMIs/ Outstanding Balance payment?
This is not a waiver. EMI falling due for March, April, and May 2020 would be deferred. EMI will resume from June 2020 and there will be an extension of the remaining tenure of the loan. The additional interest for the moratorium period will also be applicable.
Does the moratorium cover principal as well as interest?
Yes. It includes instalments (principal/interest/EMI/credit card dues) falling due between March 1, 2020 and May 31, 2020.
Will there be any late payment charges?
Will the moratorium impact my credit card services?
No. The card services will be active or inactive for usage only as per the status of your credit card account on February 2020 and periodic review of the account. Make sure you make card payment regularly to lessen your burden from outstanding amount accumulation, which will also include interest and GST charges.
Will the bank generate my credit card statement?
Yes, your credit card statement will keep generating and will be sent to you. The statement will include your past dues and new charges (including usage, interest levied because of the deferral of payment during the moratorium). The interest will be computed from the date of individual transactions till the statement date.
If I missed the payment for March 2020, will I still be eligible for a moratorium?
Yes, you will still be eligible for the moratorium.