SBI warning for you! Don't want to pay additional EMI interest? Read this message from State Bank of India
The warning has been issued with respect to deferment of equated monthly instalments (EMIs) offered under the RBI's relief package on account of COVID-19.
It's a warning for the borrowers of the country's largest lender State Bank of India (SBI). The warning has been issued with respect to deferment of equated monthly instalments (EMIs) offered under the RBI's relief package on account of COVID-19.
In a major development, SBI on Wednesday warned borrowers that deferment of EMIs could put an additional cost on them. The lender also advised borrowers to repay their loans if they are in a position to do the same.
Last week, the Reserve Bank of India (RBI) gave a relief package for retail borrowers and businesses, by way of announcing a three-month moratorium on payment of all term loans?falling due between March 1, 2020, and May 31, 2020.
"The dispensation is aimed to mitigate the burden of debt servicing brought about by disruptions on account of COVID 19 pandemic and to ensure the continuity of viable businesses. Any deferment of interest over such a long period, if it is there, will entail additional costs because it is not interest waiver, it is interest deferment," SBI managing director (retail and digital banking) C S Setty told
reporters through a video conference.
In a frequently asked questions (FAQ) section on Covid 19 relief measures published on its website, the bank said during the moratorium period, interest shall continue to accrue on the outstanding portion of the term loan.
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