SBI announces EMI moratorium extension by another three months for its term loan borrowers

In a bid to help customers avail EMI moratorium extension benefit announced by the Reserve Bank of India (RBI), the State Bank of India (SBI) has decided to extend the period by another three months. The largest Indian commercial bank has extended this facility to all its customers without waiting for their request. SBI has started notifying its borrowers via SMS for their consent to defer EMIs.

SBI informed about the decision in a statement and said, "In line with recent RBIs announcement on extension of the moratorium on term loan EMIs by another three months, country's largest lender, State Bank of India (SBI), has decided to extend the moratorium by another 3 months in loan accounts of all eligible customers without waiting for their request."

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Besides, the SBI has also proactively reached out to all of its eligible loan customers to obtain their consent to stop their Standing Instructions (SIs) / NACH mandate for the EMIs falling due in June, July and August 2020.  For this, the Bank has simplified the process of stopping the EMIs by initiating a SMS communication to nearly 85 lakh eligible borrowers asking about their consent to stop EMIs. The borrowers have to reply with a YES to a designated virtual mobile number (VMN) mentioned in the SMS sent by the Bank within 5 days of receiving the SMS, if they wish to defer the EMIs.

The extension of EMI| moratorium and deferment of EMIs would give some respite to the borrowers amid COVID-19 outbreak.