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In accordance with the guidelines of the Reserve Bank of India (RBI), the private lender ICICI Bank also extended the moratorium on loans by an additional three months from June 2020. Previously, the moratorium was allowed between March and May 2020, however, with the increase in Covid-19 cases. the Indian economy has taken its toll. That said, the RBI, in order to provide relief to borrowers, authorized an additional 3-month moratorium on term loans.

The ICICI Bank Loans / Credit Cards / Credit Facilities Moratorium can be used on a monthly basis.

For example, if you go for a moratorium in June 2020 then the due dates and payments due on your loans / credit cards / credit facilities will be postponed.

Also, ICICI Bank has given an option to defer the interest payable during the month of June 2020 on the working capital facilities.

At ICICI, you can currently request a moratorium for the month of June 2020. Requests can be sent before June 24, 2020. To benefit from a moratorium in July and August, the client will need to reapply.

Notably, a borrower must submit a moratorium request at least 5 business days prior to your IME / payment due date.

If you submit the request within 5 business days of your EMI / payment due date or after the EMI / payment due date has expired, the EMI / payment may be debited. . However, ICICI will allow reimbursement of the EMI payment (if debited) within the next 7 business days.

However, if you opt for a moratorium, interest on and interest on the principal outstanding will continue to accrue during the period and the term of the loan will increase.

A moratorium on a loan means a respite in terms of payment by installments. IMEs are not removed from the bank’s ledger, however, are delayed in terms of payment.

RBI in its May policy said, “As the moratorium / postponement is specifically intended to allow borrowers to overcome disruptions from COVID-19, they will not be treated as changes in the terms and conditions of loan agreements due to financial difficulties of borrowers. and, therefore, will not result in a downgrade of the asset classification. “

On Tuesday, ICICI Bank stock was trading flat at Rs340 per coin around 10:10 am on Sensex. The action hit an intraday high and low of Rs342.20 per coin and Rs332.45 per coin respectively.