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What is the recent regulation released by the RBI on moratorium to address the financial stress caused by COVID-19?

As per 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.

What kind of loans come under Moratorium benefit?

All kinds of term loans are eligible for Moratorium.

Will the moratorium cover both my principal and interest component?

Yes, it applies on both principal and interest component.

Are you going to waive off my EMI for March 2020 to August 2020?

Please note that this is only a deferment of your EMI and not waiver. You will have to pay your monthly EMI at a later date.

What is the process to be followed for obtaining the benefit of instalment moratorium from June to August 20?

Granting of moratorium is not automatic. You have to request for Moratorium at any of our touch points – branch or call center (1800 266 3202) or send us an email (customercare@magma.co.in). Also upon non-clearance of June EMI, our team shall be in touch with you to understand the reasons for non- payment and discuss moratorium preference for June-August.

Do I need to submit any document to avail the benefit of Moratorium?

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. You can discuss your specific queries with our representative. We encourage you to read the Company’s policy on moratorium at . 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.

What will happen to my loan in case I wish to avail Moratorium?

Interest shall continue to accrue on the outstanding portion of the loan during the deferment period. Accrued interest shall be capitalized, and a revised repayment schedule would be drawn up. Please note that your loan tenure will increase by the period of Moratorium offered, and there will be additional interest on the principal outstanding which will be levied till the end of the tenure. Your EMI amount may either change over the entire remaining tenure or over the last few months as a result of the additional interest accrued during the Moratorium period. It will depend on your banking instrument validity etc., along with other factors. Details of interest and EMI will be provided to you in the revised repayment schedule once Moratorium is applied to your loan.

Once Moratorium is lifted, do I have to pay all deferred EMI's at one go?

No, this is a deferment of your EMI. You will pay your monthly EMIs as per revised repayment schedule after moratorium period. There will be an extension of tenure in your loan tenure after the end of the original loan tenor based on the number of months for which you have availed Moratorium. It is not compulsory for you to pay all the deferred EMIs at one go.

I have already written to your customer care team requesting for moratorium. Will my request be actioned?

Our business representative will reach out to you to discuss regarding Moratorium application and your request will be actioned accordingly.

My financial position is not impacted and hence I do not intend to avail moratorium and want to continue to make the EMI Payment as in the past. Can I do so?

Yes, you continue to make your EMI payments. Your EMI will be presented as per schedule. If you have adequate funds, we encourage you to continue paying your instalments to avoid the extra interest charges and tenor extension.

Will there be an impact on my CIBIL score due to non-payment of EMI?

For all customers who have opted for Moratorium, 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 reflect in CIBIL records. Hence request you to clear your over dues at the earliest.

What will happen after the relief period /moratorium is completed?

After the relief period, your Loan will run as per the revised repayment schedule. Your EMI amount may either change over the entire remaining tenure or over the last few months as a result of the additional interest accrued during the Moratorium period. It will depend on your banking instrument validity etc along with other factors. Details of interest and EMI will be provided to you in the revised repayment schedule once Moratorium is applied to your loan.

What will happen to my existing pre-scheduled ACH/ECS/Standing instructions/PDCs of my loan account if I avail moratorium? Do I need to re-submit ACH/PDCs for the extension period?

Yes; our team shall be in touch with you to collect the updated ACH; upon registration of the same your existing ACH/ECS/PDCs shall stand cancelled.

How will I come to know whether Moratorium benefits are given to me?

You will be provided a confirmation through one of the many modes, like SMS/emails.

I have multiple loans with Magma. Will I get benefits for all my loans?

Yes it is applicable for all loans as long as you meet the internal eligibility criteria.

Will there be any charges on OD Interest on my account during Moratorium period?

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 levied. If there is any outstanding EMI as on 1st March 2020, then ODI shall continue to accrue on it. We therefore encourage you to clear your over dues. Note: ODI charge for EMIs defaulted prior to March 20 will continue to be levied.

What happens if I give the deferral/moratorium request after the EMI is already deducted?

In case your loan EMIs due are paid then the payment will be accounted for respective month and the moratorium shall be granted only for the remaining moratorium period.

Can I foreclose my loan account in these 3 months?

Yes, you may foreclose your loan account.

Will the terms and condition of loan agreement change if one opts for moratorium?

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

Should customer pay the EMI if any Magma staff or its collection agent approach for repayment?

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.

Will I be charged a higher interest rate if I take this extension?

No. Interest rate for these Moratorium changes remain unchanged.

My loan just commenced with due date on 1st March 20, will I be eligible for Moratorium?

Yes, your loan will be eligible for Moratorium for the EMIs falling due till Aug 20.