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HDFC Loan Moratorium

HDFC Loan EMI Moratorium

Last Updated 21st Sep 2021

  • HDFC loan moratorium is a concession or postponement of EMIs that loan borrowers are obliged to pay at regular intervals.
  • HDFC is offering a loan moratorium for six months, beginning from March 1, 2020 and continuing up to August 31, 2020.
  • The HDFC loan moratorium can be availed on home loans, auto loans, personal loan and credit cards.
  • Availing HDFC loan moratorium will result in additional interest and extended tenure.

What is HDFC Loan Moratorium?

The break out of the ongoing pandemic, Covid-19 and the following lockdowns has impacted the economy negatively. Whereas the authorities are continuously making efforts to restore the regular flow of life, another issue has emerged in the apparel of EMIs. In order to come with a solution for this problem, RBI has announced relief measurements to loosen the burden of EMIs during the financial crisis. As per the regulations brought out by RBI, HDFC has offered a moratorium on EMIs. This moratorium allows a postponement in the payment of EMIs. The important point to be kept in mind is that moratorium does not mean a complete concession; it means a mere postponement of the EMIs. Hence, loan borrowers can avail moratorium on EMIs or a particular period of time, as stated in the RBI regulations. However, once the moratorium periods end, the payments of EMIs will be back on track.

The first moratorium period was from March to May 2020. RBI has extended the moratorium period in accordance with the financial situation. As per the new announcement, HDFC loan borrowers will get the benefit of another moratorium period of three months, that starts from June 1, 2020, and continues up to August 31 2020.

Eligibility for HDFC Loan Moratorium

All loan borrowers of HDFC with due EMIs prior to March 1 2020, i.e., before the first moratorium period started, are eligible for this scheme. Borrowers having due EMIs prior to June 1 2020, i.e. the second moratorium period can also apply for the postponement of EMIs. However, accepting or rejecting any request for the loan moratorium will be subject to HDFC.

HDFC loan borrowers who have already availed the first moratorium period can apply for the second moratorium period to extend the postponement till 31 st August 2020. Agriculture loan borrowers (Kisan Gold Cardholder), Microfinance customers under the Sustainable Livelihood initiative, corporate and SME customers can also apply for the moratorium.

Who should opt for HDFC Loan Moratorium?

Individuals going through a financial crisis should opt for the HDFC loan moratorium. The moratorium will free them from the financial burden of EMIs for the next three months. Borrowers can continue the EMIs once their financial status has been restored.

Who should not opt for HDFC Loan Moratorium?

If a borrower is financially stable and can manage to pay the EMI at this moment, he or she can let go of this scheme. Borrowers should take into account the fact that once the moratorium period is over, they will be bound to pay the EMIs. While requesting a moratorium, one should remember that the interest accumulated on the principal amount during the moratorium will be amortized over the rest tenure of the loan.

How to avail HDFC Loan Moratorium?

You can avail the HDFC LTD loan moratorium by logging into your online loan account. Follow these steps to complete the process.

  • Go to the official website of HDFC Ltd.
  • Log in using Loan account Number or using a User ID.

These steps are required in case you are logging in using your Loan account number.

  • Enter Loan Account Number
  • Enter Date of Birth
  • Click on submit

These steps are required in case you are logging in using your User ID.

  • Enter User ID
  • Enter Password
  • Click on LOGIN

After login in, opt for the moratorium by following the instruction given on the website. The last date for applying for the second moratorium or extending the first one is 20the June 2020. If you don’t want to opt for the moratorium scheme, don’t indulge in following the steps mentioned above and keep paying the EMIs on time as you did so far.

What happens if you opt for HDFC Loan Moratorium?

As stated earlier, the moratorium is not a complete concession, rather a delay on the payment of EMIs. If you opt for the HDFC loan moratorium, you will not have to pay the EMIs for the next three months, i.e., for June, July and August. However, the interest accumulated in these three months will be amortized to the principal amount. It means you will have to pay the amount eventually. The tenure of the loan will be increased as well.

Impact of HDFC Home Loan EMI Moratorium

If one requests a moratorium on the EMIs of their HDFC home loan for three months or the complete six months, he or she will not be obliged to pay the EMIs for the moratorium period. However, at the end of the moratorium, he or she will return to paying the EMI. Availing HDFC loan moratorium will result in additional EMI payments, additional interest and extended tenure.

For instance, suppose on June 1, 2018, you had taken a house loan of Rs. 50,00,000, at the interest rate of 12%, with a tenure of 96 months. Hence, your EMI will be Rs 81,264.

Suppose you have been paying EMIs sincerely till May 30, 2020. You have already paid 24 EMIs and have 72 pending EMIs. Now, on June 1, 2020, you have opted for a moratorium of three months. In this scenario, the interest part of the EMIs for June, July and August were:

Months Interest Amount
June ₹ 41,567
July ₹ 41,170
August ₹ 40,769

The total interest amount of ₹ 1,23,506 would be added in the outstanding principal of ₹ 41,56,696 for the month of June 2020. Thus, after the moratorium period is over the outstanding principal amount on September 1, 2020, would be ₹ 42,80,202. The remaining tenure after moratorium would remain the same as it was before the moratorium, i.e., 72 months and the new EMI would be ₹ 83,679.

TIn other words, we can say that the months for which you will not pay any EMI, the tenure of your loan would be extended by that many months. Plus, the interest which was supposed to be paid during those months will be added in your loan amount and revised EMI would be calculated after the holiday period is over.

Remember, you can avail a moratorium period anywhere from one month to six months as per your convenience. The additional interest and the increased tenure depend on the availed moratorium period. Once the moratorium period is over, you will be paying the EMIs along with the additional interest for the remaining tenure.

FAQs

Does the moratorium apply only on principal repayment, interest repayment or both?

The HDFC moratorium applies on the complete EMI amount including both principal amount and interest amount.

Will there be any penal interest during the moratorium period?

No, there will not be any penal interest during the moratorium period. However, you must remember that during the moratorium period interest will accrue on the outstanding principal.

Will availing the HDFC loan moratorium affect the credit score?

No, the HDFC loan moratorium will not affect the credit score. Non-receipts of EMIs will not be classified or reported during the moratorium period.

What will be the interest rate after the end of the moratorium period?

There is no change in the interest rates. The accumulated interest during the moratorium is added to outstanding loan once the moratorium period ends.

If I do not want to avail moratorium, what should I do?

If you do not want to avail moratorium, keep paying the EMIs as you generally do. No further action is required from you.

I have multiple loans. Can I avail moratorium for all of them?

Yes, you can avail moratorium on all your loans. However, you will have to request a moratorium for each loan separately.

Will the moratorium be applicable to any new loan taken in the month of March?

The HDFC moratorium applies to loans taken prior to the first moratorium period, i.e., 1st March 2020. Any loan taken after that period will not be eligible for a moratorium.

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