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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 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. 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 May 2020?

Please note that this is only a deferment of your EMI and not waiver. You will have to pay your monthly EMI after three months.

What is the process to be followed for obtaining the benefit of instalment moratorium?

Eligible customers will receive intimation regarding Moratorium via SMS and they will have to confirm within 72 hours. Response to be sent only if you DO NOT want to avail Moratorium. If we do not receive a response, it will be considered as deemed acceptance and Moratorium will be applied.

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 communication from our end. If you do not wish to avail Moratorium please opt-out by replying MAGC No to 8425857590 within 72 hours. In case you don’t reply within 72 hours it will be treated as deemed acceptance and moratorium will be applied. We encourage you to read the Company’s policy on moratorium at www.magma.co.in. Once the Company has applied moratorium to your account, it will be deemed that you have read and understood the Company’s policy on moratorium. Please note that availing Moratorium attracts additional interest for the principal outstanding and will be levied till the end of the tenure. Hence we encourage you to continue making payment as per schedule.

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, subject to a maximum of 3 months 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 3 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 of three months. There will be an extension of three months in your loan tenure after the end of the original loan tenor. It is not compulsory for you to pay all the deferred EMIs in June 2020.

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

SMS will be sent to eligible customers to the registered mobile number. In case you haven’t received the SMS, please reach out to us at 1800 266 3202 to verify the details and we shall provide clarity.

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?

If your financial position is not impacted or you do not want to pay additional interest please opt-out by replying MAGC No to 8425857590 within 72 hours. Your EMI 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.

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 (March to May 20). 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, you will need to submit ACH/PDCs for the extension period. Our representative will get in touch with you.

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

You will be provided a confirmation on the exact Moratorium period through various 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 & Cheque bounce charges on my account during these 3 months?

Please note that overdue interest is charged in case of default in payment. However, during the moratorium, the payment itself is contractually stopped. 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. We won’t levy cheque bounce charge during the Moratorium period (March to May 20)

What happens if I give the deferral/moratorium request after the EMI for the month of March/April is already deducted?

In case your loan EMIs due in March & April 20 are paid then you Moratorium shall be granted only for May 2020.

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.

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 in April & May 20.