COVID-19: Axis Bank offers EMI deferment on loans for 3 months
"In the wake of the Reserve Bank of India's guidelines on the COVID-19 Regulatory Package, we are now offering you the flexibility to opt for a moratorium/deferment," Axis Bank said in a tweet.
Customers can opt for moratorium on payment of installments and interest for various term loans/credit card dues, and/or defer the interest for working capital facilities due between March 1, 2020 and May 31, 2020, it said.
The offer of flexibility is in line with most of its peers in the private sector such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
"The option of deferment can be availed if your immediate cash flows are adversely impacted or you are facing financial constraints arising from Covid-19 pandemic," Axis Bank said detailing about the terms and conditions on its website.
Further, the bank clarified to its customers that it is only a deferment option and not a concession or waiver, since interest would continue to accrue for this period.
The repayment would resume from June 2020, once the deferment period is over.
Borrowers 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 bank branches, Axis Bank said adding, it is deemed that borrowers have opted for the moratorium if there is no written communication stating otherwise.
Meanwhile, a host of state-run banks, which control over two-thirds of the system, have gone for an option where the repayments automatically get deferred unless a customer informs of her willingness to pay.
Experts have already made it clear that this is not an interest waiver, but a deferment of payments, meaning the additional interest costs will have to borne by the customers. KPM ANSANS