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ICICI Bank Loan Moratorium

ICICI Bank Loan EMI Moratorium

Last Updated 26th Sep 2021

  • ICICI bank loan moratorium allows loan borrowers to waive off or postponement the EMI payments that loan borrowers are obliged to pay at regular intervals.
  • The ICICI bank loan moratorium can be availed for six months, beginning from March 1, 2020, and continuing up to August 31, 2020.
  • ICICI bank home loans, auto loans, personal loan and credit card loans are eligible for the moratorium.
  • The last date for applying for a moratorium for July and August 2020 is June 24, 2020.
  • Opting for the ICICI bank loan moratorium will result in additional interest and extended tenure.

Watch How to Apply for ICICI Bank's Restructuring Scheme

What is ICICI Bank Loan Moratorium??

To help loan borrowers deal with the financial crisis raised due to the current pandemic, Covid19, RBI has announced a moratorium on loans. As per the regulations brought by RBI, ICICI bank offered moratorium of three months to its loan borrowers starting from March 1, 2020, and continuing up to May 31, 2020. The bank has further extended the moratorium for three months, dating from June 1, 2020, to August 31, 2020. The moratorium provides financial relief to the loan borrowers during the present state of the financial crisis. Nevertheless, the key point to remember is that moratorium means a mere postpone of the EMI payments, not a complete waive off. With the moratorium scheme, loan borrowers can opt to delay the EMIs, not get rid of them completely. Therefore, the EMIs will continue at its previous space when the moratorium period ends. Additionally, the moratorium scheme comes with terms and conditions which must be kept in mind.

By opting for the ICICI Bank loan moratorium, loan borrowers will be free from the obligation to pay EMIs for the selected moratorium period. Borrowers can skip paying EMIs until their financial condition becomes stable. However, they will have to resume paying EMIs on a regular basis, as soon as the moratorium period ends.

Who should opt for ICICI Bank Loan Moratorium?

Loan borrowers facing serious financial crises and unable to pay the EMIs on the schedule should avail the benefits of the ICICI bank loan moratorium. By opting for the moratorium, you can relieve yourself from the financial obligation of EMIs for a few months. Once your financial stability is restored, you can start paying the EMIs.

Who should not opt for ICICI Bank Loan Moratorium?

Loan borrowers who have financial stability even during the pandemic situation and can afford to pay the EMIs without much trouble, can not opt for this scheme. Since moratorium is just a postponement of EMIs, you will have to pay the EMIs when the moratorium period ends. Furthermore, you should remember that even though you will not be obliged to pay EMIs for the selected moratorium period, the interest will keep accumulating during the moratorium and will be added to your outstanding amount.

How to avail ICICI Bank Loan Moratorium?

The ICICI bank loan moratorium can be availed in the following two ways.

  • By visiting the website of ICICI bank.
  • By clicking on the link sent ‘to opt for deferment’, by the bank via mail to your registered mail id or via SMS to your registered mobile number

To request the moratorium online, on the website of ICICI bank, follow these steps mentioned below.

  • Visit the homepage of ICICI bank and click on Choose Your Option.
  • On clicking the said option, you will be redirected to a new page.
  • On the new page, click on Next positioned at the end of the page.
  • After clicking on Next, you will be redirected to another page.
  • On the new page, enter your registered mobile number and click on Next.
  • Once clicked on the sid option, follow the subsequent instruction to complete the process.

Key Point to Remember while opting for ICICI Bank Loan Moratorium

Below are a few key points that one should keep in mind while opting for the ICICI bank loan moratorium.

  • Loan borrowers can presently apply for a moratorium only for June 2020.
  • Loan borrowers willing to avail moratorium for July and August 2020 are required to re-apply on the website. Acceptance or rejection of the application depends on the bank.
  • The moratorium request needs to be submitted at least 5 days prior to the due date of your EMI.
  • The last date for applying for a moratorium for July and August 2020, is June 24, 2020.
  • If EMI is debited even after you have opted for the moratorium, the refund shall be generated within 7 working days.

What happens if you opt for ICICI Bank Loan Moratorium?

If a loan borrower opts for the ICICi bank loan moratorium, he or she will not be obliged to pay EMIs for the selected moratorium period. However, the moratorium means a delay in the payment of the EMIs, not a complete concession. Hence, the loan borrower will be required to start paying the EMIs after the moratorium period ends. The interest will keep accruing during the moratorium period and will be added to the outstanding amount. Hence, you will need to pay the additional interest along with the EMIs, when the moratorium period ends. The loan tenure will be extended as well, as a result of the moratorium.

Impact of ICICI Bank Home Loan EMI Moratorium

ICICI home loan borrowers can avail EMI moratorium on their home loans. At present, the loan borrowers can avail the moratorium with their required period. However, the bank requires separate applications for each month. The loan borrowers can postpone the payment of EMIs for a maximum of six months with the moratorium scheme. However, they will be bound to pay the EMIs when the moratorium ends.

For instance, on April 1, 2019, you had taken a home loan of ₹ 35,00,000 at the interest rate of 14% with tenure for 72 months. Therefore, your EMI is ₹ 72,120. Suppose, till March 31, 2020, you have regularly paid EMIs. Hence, you have paid 12 EMIs, and 60 EMIs are pending. On April 1, 2020, you decided to opt for a moratorium of five months. In this scenario, the amount of interest getting due in the moratorium months is:

Months Interest Amount
April ₹ 36,161
May ₹ 35,741
June ₹ 35,317
July ₹ 34,888
August ₹ 34,453

The total interest due during the moratorium period amounts to ₹ 1,76,560. Therefore, the revised outstanding principal amount after adding the interest due during the moratorium period with the outstanding principal balance as on April 1, 2020, would be ₹ 32,76,066. The remaining tenure on September 1, 2020, would be 60 months, and the revised EMI would be ₹ 76,228.

Thus, the interest you were supposed to pay during thosemonths or moratorium through your EMIs would be added in your outstanding loanamount of the month from which moratorium started. Plus, after the moratorium,the loan tenure will be the same as it was at the start of the moratoriumperiod and the EMI would be revised based on the new outstanding loan amount.

You need not select a moratorium of five months; the moratorium period can be more or less depending on your requirement. The additional interest accumulated during the moratorium period and the extension of the tenure depend on the selected moratorium period.

Impact of ICICI Bank Auto Loan EMI Moratorium

If you opt for the ICICI bank auto loan EMI moratorium, you will no longer be obliged to pay your EMIs for a selected period of time. Nonetheless, when the moratorium period ends, you will have to start paying the EMIs regularly. While opting for the moratorium, keep in mind that after availing the moratorium, the interest accumulated during the selected moratorium period will be added to the outstanding amount and the loan tenure will be extended.

For instance, on June 1, 2018, you had taken an auto loan of ₹ 7,00,000 at the interest rate of 14% with tenure for 48 months. Therefore, your EMI is ₹ 19,129. Suppose, till May 31, 2020, you have regularly paid EMIs. Hence, you have paid 24 EMIs, and 24 EMIs are pending. On June 1, 2020, you decided to opt for a moratorium of three months. In this scenario, the amount of interest getting due in the months of moratorium period is:

Months Interest Amount
June ₹ 4,648
July ₹ 4,479
August ₹ 4,308

The total interest due during the moratorium period amounts to ₹ 13,435. Therefore, the revised outstanding principal amount after adding the interest due during the moratorium period with the outstanding principal balance as on June 1, 2020, would be ₹ 4,11,839. The remaining tenure on September 1, 2020, would be 24 months, and the revised EMI would be ₹ 19,774.

Thus, the interest you were supposed to pay during thosemonths or moratorium through your EMIs would be added in your outstanding loanamount of the month from which moratorium started. Plus, after the moratorium,the loan tenure will be the same as it was at the start of the moratoriumperiod and the EMI would be revised based on the new outstanding loan amount.

Your selected moratorium period can be less or more than three months, depending on your requirement. The additional interest accumulated during the moratorium period and the extension of the tenure depend on the selected moratorium period.

Impact of ICICI Bank Personal Loan EMI Moratorium

The ICICI bank personal loan EMI moratorium works in the same way as the EMI moratorium for home loans and auto loans. The loan borrowers can opt for a moratorium to postpone the EMIs for a selected period. Once the moratorium period is over, loan borrowers will have to start the payment for the EMIs along with the additional interest accrued during the moratorium period. Furthermore, the loan tenure will be extended.

For instance, on March 1, 2017, you had taken a personal loan of ₹ 12,00,000 at the interest rate of 10% with tenure for 48 months. Therefore, your EMI is ₹ 30,435. Suppose, till February 29, 2020, you have regularly paid EMIs. Hence, you have paid 36 EMIs, and 12 EMIs are pending. On March 1, 2020, you decided to opt for a moratorium of six months. In this scenario, the amount of interest getting due in the months of moratorium period is:

Months Interest Amount
March ₹ 2,885
April ₹ 2,655
May ₹ 2,424
June ₹ 2,190
July ₹ 1,955
August ₹ 1,718

The total interest due during the moratorium period amounts to ₹ 13,827. Therefore, the revised outstanding principal amount after adding the interest due during the moratorium period with the outstanding principal balance as on March 1, 2020, would be ₹ 3,60,011. The remaining tenure on September 1, 2020, would be 12 months, and the revised EMI would be ₹ 31,651.

Thus, the interest you were supposed to pay during thosemonths or moratorium through your EMIs would be added in your outstanding loanamount of the month from which moratorium started. Plus, after the moratorium,the loan tenure will be the same as it was at the start of the moratoriumperiod and the EMI would be revised based on the new outstanding loan amount.

You need not select a moratorium of six months; moratorium period can be less depending on your requirement. The additional interest accumulated during the chosen moratorium period and the extension of the tenure depend on the selected moratorium period.

Impact of ICICI Bank Credit Card EMI Moratorium

Moratorium on ICICI bank credit card payments and credit card loans can be availed to postpone the payment of the EMIs.

In case of credit card monthly bills, cardholders can choose to pay only the minimum balance due and carry the rest of the balance to the next month. However, if a card holder does not wants to pay any money, the moratorium can be availed. For ICICI credit cardholders the moratorium has to be availed each month, there is no option to choose moratorium for multiple months at the same time. Also, during the moratorium period, the interest will continue to be charged on the credit card balance along with any further purchases made.

Since the rate of interest on the credit card is high, it is strongly recommended to continue paying the dues so that you can avoid paying a high amount of interest later on.

In case of credit card loan, the moratorium will worksimilarly as loan types. So, for instance, on June 1, 2019, you had taken acredit card loan of ₹ 4,50,000 at the interest rate of 16% with tenure for 24months. Therefore, your EMI is ₹ 22,833. Now, until May 31, 2020, you have regularly paid EMIs. Hence, you have paid 12 EMIs, and 12 EMIs are pending. OnMarch 1, 2020, you decided to opt for a moratorium of three months. In thisscenario, the amount of interest getting due in the months of moratoriumis:

Months Interest Amount
June ₹ 3,238
July ₹ 2,987
August ₹ 2,733

The total interest due during the moratorium period amounts to ₹ 8,958. Therefore, the revised outstanding principal amount after adding the interest due during the moratorium period with the outstanding principal balance as on June 1, 2020, would be ₹ 2,51,802. The remaining tenure on September 1, 2020, would be 12 months, and the revised EMI would be ₹ 22,846.

Thus, the interest you were supposed to pay during those months or moratorium through your EMIs would be added in your outstanding loan amount of the month from which moratorium started. Plus, after the moratorium, the loan tenure will be the same as it was at the start of the moratorium period and the EMI would be revised based on the new outstanding loan amount.

FAQs

Is opting for a moratorium is compulsory for all loan borrowers?

No, opting for a moratorium is not compulsory for all; it is optional. Loan borrowers who are failing to pay the EMIs due to the current financial crisis and want concession on EMIs should apply for a moratorium.

Is the moratorium applicable only on principal repayment, interest repayment or both?

The moratorium applies to the entire EMI amount, which includes both principal repayment and interest payment.

Are NRIs eligible for a moratorium?

Yes, NRIs are eligible for the moratorium. NRIs can avail the moratorium by visiting the official website of ICICI Bank or by clicking on the link shared by the bank to the registered mail id or mobile number.

Will there be any late charges during the moratorium period?

No, during the moratorium period, there will be no late charges.

Can I make EMI payments during the moratorium period?

Moratorium gives a waive off or concession on EMIs payments. However, you can make EMI payments during the moratorium period.

If there is sufficient balance in my account, with the bank debit the EMI amount even after I avail the moratorium?

No, if you opt for the moratorium period, the bank will not debit any EMI even if your account has sufficient balance.

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

Yes, you can avail moratorium for multiple loans. However, you will have to request a moratorium for each loan separately on the website of ICICI bank before the last date, i.e., June 24, 2020.

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