A home loan moratorium can provide much-needed relief to borrowers in difficult financial situations. Customers of HDFC, one of India’s leading housing finance companies, have access to this option. Reading this guide will help you understand the fundamentals of the HDFC home loan moratorium, how it works, and how it may affect your finances.
Overview of HDFC Home Loan Moratorium
To provide customers with relief and in compliance with RBI guidelines, HDFC extends an EMI moratorium to all current borrowers, including those with credit card debt and term loans. The moratorium’s goal is to assist individuals and independent contractors in coping with the reduced cash flows resulting from COVID-19-related lockdowns and business interruptions. At first, the moratorium was only available from March through May, a period of three months. The RBI gave banks and NBFCs instructions in June to prolong the moratorium offer for an additional three months, from June 1, 2020, to August 31, 2020.
Who is eligible?
Customers of HDFC Bank who have accessed retail credit facilities, including installment loans, before March 1, 2020, are eligible. Consumers who have past-due accounts as of March 1, 2020, may also choose to apply for the moratorium; the bank will evaluate these requests on an individual basis. Customers who have taken out Microfinance through the Bank’s Sustainable Livelihood Initiative and Agri Loans (Kisan Gold Card) are also qualified. All corporate and small business clients are also qualified. You can reach out to our Relationship Managers directly for more information, or they will get in touch with you.
What will happen if I choose the EMI Moratorium?
If you select an EMI moratorium, the bank will not ask for money again until May 31, 2020. During the moratorium, interest on the principal balance will accrue at the agreed-upon rate. The requested moratorium period will be added to the loan term. The loan term will be extended by two months, for example, if the March 2020 EMI is paid and the April and May 2020 moratoriums are applied.
What charges will I pay, if I avail of this EMI moratorium?
If you take advantage of the EMI moratorium, interest will be charged on the outstanding loan balance during the EMI moratorium period at the agreed-upon rate. The original loan tenor will be extended by the interest to be collected.
How do I get this EMI moratorium?
The bank will require you to give them permission in one of the following ways:-Call 022-50042333 or 022-50042211 and follow the instructions, OR -Submit your request with a few clicks here. Note: Before you begin, make sure you have your loan account number on hand.
Does this moratorium apply to outstanding credit card balances and credit card loans?
Indeed, there is a moratorium on loans obtained using credit cards and outstanding credit card debt for payments due between March 1, 2020, and May 31, 2020. The moratorium allows you to postpone payment until May 31, 2020. On or after May 31, 2020, you must pay the minimum amount owed or the full amount owed plus accrued interest.
Are all credit card customers eligible for this moratorium?
Indeed. If retail credit card customers make timely payments on their outstanding balances and any loans taken out on the card by March 1, 2022, then they will all be considered eligible for the moratorium.
Conclusion
The HDFC Home Loan Moratorium enables qualified borrowers to postpone EMI payments while interest is accumulated, providing essential financial relief during hard times. Borrowers can make wise decisions if they are aware of how it operates, who qualifies, and any possible effects. Although this moratorium is a short-term solution meant to reduce financial strains, it lengthens the loan’s term and raises interest rates overall.