Dear Customer, With respect to the RBI guidelines issued due to the Covid-19 outbreak, India shelter provided the option to avail the moratorium for instalments due between 01st Mar 2020 to 31st May 2020, to aid you in case you are facing cash flow problems. The option to avail moratorium has further been extended for the period 1st June 2020 to 31st Aug 2020.
If you opt for a moratorium, there will be an increase in loan tenure and/or an increase in EMI amount.
Frequently Asked Questions:
Question: What is the moratorium period?
Answer: As per RBI guidelines, the moratorium period is the time during which the borrower is not required to make any repayment (currently till 31st Aug 2020). The repayment begins after the completion of the moratorium period.
Question: Will the Company itself provide me with a moratorium?
Answer: You should contact Company to avail the facility of the Moratorium facility. In case you don’t intimate the company about your acceptance to the moratorium, the Company will present your EMI due in the bank for payment. You shall be deemed to have accepted moratorium, in case, the EMI presented got returned and you don’t pay before the month-end.
The company will allow you various mode to give you consent for moratorium over Voice call or SMS or on the Company’s website to avail of the Moratorium Period.
Question: Is this necessary to avail moratorium period?
Answer: No, if you are willing and capable to pay the EMI you should not avail of this moratorium period to avoid additional interest on the outstanding loan amount for this period. Even if you have availed of the moratorium, you can make the payment of instalments anytime during the moratorium period as per convenience.
Question: Do I need to repay all the EMI’s immediately after completion of the moratorium period?
Answer: No, Interest accrued during this period will be added to the balance principal outstanding. Consequent to this, your EMI’s and/or Tenure will increase.
Question: Will I have to pay interest on the outstanding loan for the moratorium period?
Answer: Yes, interest accrued on the outstanding loan amount and will be added to the remaining EMI’s.
Question: What will happen to my credit score if I opt for the moratorium?
Answer: Your credit score will not be affected if you avail of this moratorium period.
Question: Is there any benefit to avail the moratorium period or pay the EMI?
Answer: This option is provided not to put an additional burden on EMI’s in this crisis situation, if you are capable to pay the EMIs you should pay to avoid additional interest charges.
Question: Is this a waiver of EMIs or a deferment of EMIs?
Answer: This is not a waiver, but a deferment, you will have to pay the amount at a later as per the revised schedule of payment with an increase in EMI amount and/or Tenure.
Question: Does the moratorium cover both principal and Interest?
Answer: Yes, it does, you can skip payment of your entire EMI in this period, including Principal and interest.
Question: Can I also insist on switching to a repo-rate linked home loan?
Answer: No, the external benchmarking regime is applicable.