Customers also have the option to defer interest payments for working capital facilities falling due between March 1 and May 31.
In line with other lenders, Axis Bank on Thursday announced its policy to implement the moratorium on repayments announced by the Reserve Bank of India (RBI) last week. The bank has announced an ‘opt-in’ mechanism for some categories of loans, while applying a blanket moratorium on some others. Axis Bank will allow customers to avail a three-month deferral on the payment of certain loans and credit facilities. Customers can “opt for a moratorium on payment of equated monthly instalments (EMIs) or instalments and interest for various term loans or credit card dues”, the bank said on social media.
Customers also have the option to defer interest payments for working capital facilities falling due between March 1 and May 31. In a set of guidelines on its website, the bank clarified that the moratorium, if availed, will only be a deferral of payments and not a waiver. Consequently, interest would continue to accrue for the period and repayment would resume from June 2020.
The bank has applied a moratorium by default on certain loans and credit facilities, including gold loans, Kisan Credit Card loans and farmer loans, microfinance loans, commercial vehicle and tractor loans, and unsecured overdraft and term loans. “Borrowers having above facilities, whose cash flows are not impacted and do not wish to avail the moratorium, may choose to opt out from the moratorium by sending an email or by reaching out to any of our branches,” the bank said. For all other loans, or credit cards and facilities, customers would have to opt in to avail the moratorium and defer payments falling due between March 1 and May 31.
The outbreak coronavirus has led to a state-imposed lockdown in India, bringing economic activity to a halt. Earlier this week, lenders, including State Bank of India (SBI), HDFC Bank, ICICI Bank and Kotak Mahindra Bank (KMB), notified their respective policies for executing the repayment moratorium. ICICI Bank also offered the opt-in route for some categories of loans and opt-out for others.