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Frequently Asked Questions: Post RBIs Moratorium on Loan

By IIFL Home Loans | Published On Sep 05 2020 12:15 PM 2 min read 222 views 3843 Likes
Frequently Asked Questions: Post RBIs Moratorium on Loan

What was the announcement made by RBI on Moratorium?

The Reserve Bank of India vide circular RBI/2019-20/186 dated March 27th, 2020, announced COVID-19 Regulatory package as per which all Banks and Financial Institutions including housing finance companies were permitted to grant a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020.

RBI, further vide circular RBI/2019-20/244 dated May 23, 2020, had permitted to extend the moratorium by another three months i.e. from June 1, 2020 to August 31, 2020 on payment of all instalments in respect of term loans.

What was the impact on a loan account where moratorium facility was availed?

The repayment for such loans was rescheduled and the residual tenor was shifted across the board by the corresponding moratorium period. Interest portion, however, continued to accrue on the outstanding portion of the term loans during the moratorium period and has now amortized over the period of loan.

When is EMI holiday period ending?

As per RBI notification, the moratorium facility availed under COVID-19 regulatory package will end on 31st August, 2020.

Will there be another round of moratorium?

In case their is another round of Moratorium on Loan, it will be directly announced by RBI. The Loan policy will be aligned as per RBI's announcement. How will a loan be treated post 31st August, 2020 Post the moratorium period i.e. wef 1st Sept, 2020 regular EMI cycle will begin for all the loan accounts where moratorium facility was availed. A customer shall be expected to repay his/ her EMI as per their usual EMI cycle every month prior to availing the moratorium facility.

What action is required by customers who had availed moratorium facility?

Customers, who had availed moratorium or EMI holiday, are expected to maintain sufficient balance in their bank accounts prior to their EMI cycle date to ensure timely deduction and repayment of their monthly instalment.

Is a customer required to submit any document or inform IIFL HFL to start deducting their EMI?

No. As the moratorium will end automatically on 31st Aug, 2020, so no further documentation or action is required from customer. IIFL HFL will start the EMI cycle automatically as per the EMI due date of each customer.

What will happen if a customer doesn't repay their EMI due from Sept, 2020 cycle?

Non-payment or late payment of EMI from Sept, 2020 cycle will result in the loan account reflecting EMI overdue and may attract EMI bounce and other penal charges. In addition to this, it will negatively impact a customer credit history.

How can a customer view the impact of moratorium on their loan account or revised status of their loan account post moratorium?

Customers can Login to IIFL Loan App or Customer Portal on website for revised status of their loan account. For any other query please contact your nearest IIFL branch or call your IIFL loan executive. What will be the action required by customers post 31st Aug, 2020,

who did not avail moratorium facility? Will there be any impact on their loans due to moratorium announcement by RBI?

No action is required by any customers. All customers can continue to pay their EMI as usual. For borrowers, who did not avail moratorium, their loan will continue as per the original repayment schedule/ loan terms. You can automate your EMI payments through eNach, which is safe, secure & paperless. Call your IIFL Loan executive to register for eNach. To understand the process of eNach registration, click on

Customers can pay their loan EMIs by visiting their nearest branch or through


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