As per recent statement issued by RBI through press release dated 27th March, 2020, various developmental and regulatory policies have been announced that directly address the stress in financial conditions caused by COVID – 19.
Accordingly, RBI has permitted Lenders to grant a moratorium on payment of Loan instalments falling due between March 1, 2020 and May 31, 2020. On May 22, 2020, the RBI further announced an extension of Moratorium on all instalments falling due between from June 1, 2020 till 31st August 2020.
Moratorium is a temporary postponement of payment of interest / principal / instalments. However, interest on the Loan outstanding will keep getting levied for the deferred or moratorium period.

All loans offered by Magma Housing Finance fall under term loans and hence eligible for Moratorium.

Yes, it applies on both Principal and Interest.

Please note that this is only a deferment of your EMI and not a waiver. The interest will be levied during the moratorium period and will get added to the Principal outstanding. The same will be collected as per the revised repayment schedule.

In case you wish to opt for Moratorium, please write to us at customercare@magmahfc.co.in along with your Loan account number and latest contact details. You will receive a call from our representative before application of Moratorium.

Please note that availing Moratorium will attract additional interest over the period of the loan and will be collected by way of increased EMI or Tenure. Hence, if your repayment capacity is not impacted, we encourage you to continue making repayment as per existing schedule.

We do not envisage submission of any physical document for availing moratorium. You will receive a call from our representative once you send us an email as explained above. You can discuss your specific queries with our representative. We encourage you to read the Company’s policy on <a href=”//www.magmahfc.co.in/admin/upload/MHF_Policy%20for%20Loan%20Moratorium%20under%20COVID-19%20Regulatory%20Package_upload%20version.pdf”>moratorium at </a>
Once you opt-in and the Company grants you moratorium, it would be deemed that you have read and understood the Company’s policy on moratorium.

Interest shall continue to accrue on the outstanding portion of the loan during the moratorium period. Such accrued interest shall be capitalized, and a revised repayment schedule would be generated. As a result of this the EMI and / or balance tenure may get revised.

Borrower is required to pay the EMIs as per the revised repayment schedule and it is not compulsory for him to pay all the deferred EMIs in Sep 20.

If your financial position is not impacted or you do not want to pay additional interest please continue with the repayment as per existing terms. Your EMI payment instrument will be presented as per schedule. We encourage customers with adequate funds to continue paying during this period to avoid the extra interest charges and tenor extension.

There will be no adverse impact on your credit history on non-payment of EMI during moratorium period

However if there was any overdue before 1st March 2020, then the same will continue to reflect in CIBIL in the same time bucket. Hence request you to clear your over dues at the earliest.

After the relief period is over, the accrued interest will be added to the principal outstanding and 3 months moratorium period will be added to your balance loan term. Revised repayment schedule will be generated. This may entail increase in your EMI.

Illustration below explains the impact:

Loan amount Rs 11.85 lacs
	Rate of interest   12.80%
		Existing terms		Existing terms
		Existing EMI	Existing Tenor	Existing EMI	Existing Tenor
		Rs 14,222/-	204 months	Rs 14,665/-	207 months

Additional Interest amount to be paid with Moratorium option: Rs 1, 94,351/-

If your EMI gets modified and is not already covered vide your existing ACH/ ECS/ /Standing Instructions/ PDCs, you may need to submit them afresh. In case the same is required, our representative will get in touch with you.

You will be provided a confirmation through various modes like SMS/Email and a revised repayment schedule will be shared with you.

Yes, the Moratorium policy is applicable for all loans.

Please note that overdue interest is charged in case of default in payment. However, during the moratorium, the payment itself is contractually suspended. If there is no payment due, there is no question of a default. Therefore, there will be no overdue interest or delayed payment charges to be levied. If there is any outstanding EMI as on 1st March, then ODI shall continue to accrue on it & we encourage customers to clear over dues. Note: ODI charge for EMIs defaulted prior to March 20 will continue to be levied.

Note: ODI charge for EMIs defaulted prior to March 20 will continue to be levied.
We won’t levy cheque bounce charge during the Moratorium period (March to May 20)

In case your loan EMIs due are paid then the EMIs collected will be applied to your loan and hence Moratorium will not be applicable.

No. Interest rate for these Moratorium changes remain unchanged.

Repo rate is applicable to Banks, not to HFCs. As and when Magma will change/ reduce its PLR, same will be applied to Customer’s loan account.

No. The terms and conditions of loan agreement will not change other than the repayment schedule.

Yes, one can always make the payment voluntarily if one’s cash flow permits. However, always exercise caution and ensure that the concerned person is Magma staff or its collection agent. Please ensure to collect valid receipt for the payment made to our representative.

Yes, you can opt Moratorium for one or two months.