PSU Banks announce 3-month moratorium on term loan till 31st May

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Biznextindia : Following RBI announcement on  3-month moratorium on term loans, several public sector banks including have decided to pass on the benefit to the customers.

The banks who have announced 3-month moratorium on term loans include State Bank of India, UCO Bank, Bank of Baroda, Indian Bank, Punjab National Bank (PNB), and Corporation Bank, Union Bank of India, Allahabad Bank, Oriental Bank of Commerce, Canara Bank, Syndicate Bank and Andhra Bank. However, Private sector Banks are yet to announce any moratorium on Term loans.

 

Bank of Baroda has said that it is providing a moratorium of 3 months on payment of all installments falling due between 1st March 2020 & 31st May 2020 for all term loans including Corporate, MSME, Agriculture, Retail, Housing, Auto, Personal loans, etc. in pursuance of the RBI COVID-19 Regulatory Package.

Similarly, another PSU bank UCO Bank has announced that it has granted moratorium of 3 installments of the term loans upto May 31,2020.

 

Indian Bank  and PNB has also made similar announcements on Tuesday.

“As per COVID 19 regulatory package of RBI, Indian Bank allows a moratorium by deferring payment of EMI/ Term Loan Instalments & Interest/ Interest on Working Capital for 3 months wef 1st March 2020” Indian Bank Twitted.

 

“PNB presents relief scheme for our customers. In view of COVID-19, it has been decided to defer payment of all installments on term loan and recovery of interest on cash credit facilities falling due between March 01,2020 and May 31 2020” PNB Twitted.

RBI on 27th March had permitted Banks, NBFCs and other financial institutions to allow a three-month moratorium on payment of installments (EMIs) on term loans.

 

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