COVID-19 impact: SBI to defer EMIs by three months

In good news to those who receive EMI payment notifications in the beginning of the month, State Bank of India (SBI) has decided to defer that payment of instalments and interest/EMIs on Term Loans due between March 1 and May 31 for three months.

The decision is in line with RBI's relief package announced on Friday that asked all banks to give its customers a three-month moratorium for on term loans. 

SBI made the announcement through its official Twitter handle.

"In terms of RBI COVID19 regulatory package, SBI has initiated steps to defer the instalments and interest/EMIs on Term Loans falling due between 01.03.2020 and 31.05.2020 and extended the repayment period by 3 months. The interest on Working Capital facilities for the period 01.03.2020 and 31.05.2020 is also deferred to 30.6.2020," it wrote on Twitter.

Important announcement for all SBI customers.@guptapk @DFS_India @DFSFightsCorona#Announcement #SBI #StateBankOfIndia pic.twitter.com/hEWSXVxVIp

— State Bank of India (@TheOfficialSBI) March 31, 2020

Along with SBI, several other banks sent tweets to inform their customers that they have deferred the payment of EMIs on term loans whose instalments are due after March 1 and up to May 31 by three months.

On March 27, the central bank permitted all banks and lending institutions to allow a 3-month moratorium on all loans. "All lending institutions are allowed to defer interest on working capital repayments by three months. The moratorium on term loans, deferment of interest payment will not result in asset classification downgrade and banks may reassess the working capital cycle. It will not be treated as NPA," the RBI Governor had said.