1. What is the EMI moratorium provided for loans under COVID 19 – RBI’s regulatory package?
The prevailing situation may pose a huge challenge for people at large. As a measure of solidarity, RBI has permitted all Indian Banks / Indian Financial Institutions to offer its customers up to 3 months moratorium (holiday) on their EMI payments falling due between 1st March 2020 to 31st May 2020. Essentially, it means that the customer will not be treated as a defaulter even if he does not pay his EMI until 31st Aug 2020.
2. Who is eligible?
All MML customers who have availed of any instalment loan prior to 1st March 2020 and is due during the 3 months moratorium period are eligible the account is standard (i.e., not in NPA) as on 1st March 2020.
3. What will happen if I choose the EMI Moratorium?
If you choose EMI moratorium, MML will not collect EMI Payments on your loan till 31st Aug 2020.
4. After availing this scheme for 3 months, will we have to pay the interest for these 3 months also?
Interest will continue to accrue on the principal outstanding for the period of the moratorium at the contracted rate of the loan and same to be paid along with EMI due of June 2020 or the loan tenure will get extended by the corresponding period for which the moratorium has been availed with an increased EMI.
For e.g.: if the EMI for the month of March 2020 has been paid and moratorium for April & May 2020 has been availed, then the loan tenure will be extended by up to 3 months. The EMI will remain the same
5. If I do not want the EMI moratorium, what should I do?
If you do not want the EMI moratorium, no further action is required from your side. We will continue to bank your repayment instructions.
Is it mandatory to avail of this scheme?
We encourage customers with adequate funds to continue paying during this period to avoid the accrued interest and/or tenor extension.
6. Why was my account debited when the RBI has announced a moratorium?
Granting of the Moratorium is at the discretion of MML. We understand that all our customers may not opt for the Moratorium given that there is an additional levy of accrued interest payable under the terms of the Moratorium. If you wish to opt for the Moratorium, we would process your request and assess the same.
7. What charges will I pay, if I avail of this EMI moratorium?
If you avail the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly.
8. How do I avail this EMI moratorium?
Post-Lockdown our representative will be contacting you and will assess your financial condition basis which Moratorium will be taken up.
Please visit our nearest branch by providing
- Your name
- Loan number
- Contact number
9. I have more than one loan from MML. Can I get moratorium for both the loans?
Yes, you can opt for a moratorium for each loan that you have availed from us. Please remember that accrued interest for the EMI moratorium period will be applicable for each loan separately.
10. What if I have already paid my EMIs and would like to avail the moratorium till 31st May 2020.
You can avail of the moratorium benefits only for the unpaid EMIs. Please follow the process given above in Sr. No. 7 for availing the moratorium
11. Does the moratorium affect my Credit Rating?
No. Opting for the EMI moratorium will not affect your Credit Rating or Score during the moratorium period, i.e. until 31st May 2020. However, post the moratorium any delay in repayment of your EMI shall lead to the loan being treated as overdue and the same will be reported to the consumer credit bureaus. However, if there have been any principal or interest payment overdue prior to 1st March 2020 the adverse impact on credit history or credit score for such defaults will continue.
12. Is the Moratorium an interest waiver scheme?
No. It is not an interest waiver scheme, only a deferment scheme, i.e. you can pay your instalments along with accrued interest at a later date. However, interest during the moratorium will continue to be charged on the loan outstanding.
13. Will, there be any change in Terms & Conditions of my loan agreement
No. There will be no change in Terms & Conditions of the loan agreement, apart from the Interest accrued on account of the moratorium which will lead to change in tenor and /or change in EMI.
14. If I have already paid the EMI for March 2020, will the scheme be available to me for the next 3 months? Can I ask for a refund or will be refunded the EMI paid in March 2020, so that I can avail this scheme?
No. The EMIs already paid will not be refunded. Also, you can avail this scheme for your next 2 instalments, till 31st May 2020.
15. Will we have to pay all EMIs together, after 3 months?
No. Your loan tenure will automatically be extended by 3 months or more if you opt for Moratorium. For e.g. If you have availed a loan before March 2020 and your last EMI was supposed to be paid by December 2020, then after granting of the moratorium scheme, your last EMI will be due in March 2021.
16. Which is beneficial – paying regular EMI or availing the EMI deferment scheme?
If customers have adequate cash-flows to pay the regular EMIs, then we strongly urge you to not apply for a moratorium, as it will lead to additional EMI payments in the future.
17. I have issued NACH mandate to MML to debit my bank account for EMI recovery. Do I have to cancel this mandate with my bank?
No, there are no separate instructions required from your end. It will be managed by MML upon receipt of a confirmation from your end to avail the moratorium.
18. Will penal interest (due to deferment) be levied for the instalments which are falling due between 1st March 2020 to 31st Aug 2020.
No, penal interest will not be charged due to deferment of the instalments which are falling due between 1st March 2020 and 31st Aug 2020. However, interest would continue to accrue on the outstanding principal at the applicable rate of interest for the loan.
19. Is it OK if I continue to pay my instalment/interest and not apply for moratorium/deferment?
Yes. Please continue to pay if you can afford to. It will help you in avoiding paying accrued interest during the moratorium period