State-run State Bank of India has decided to make the process to defer EMI simple. The bank will start sending notification to its borrowers through SMS communication and if they agree then the bank will defer EMIs.
This decision of the bank is in line with the recent Reserve Bank of India’s (RBI) announcement on extension of the moratorium on term loan EMIs by another three months.
The bank stated the extension of moratorium and deferment of EMIs would give some respite to the borrowers amid COVID-19 outbreak.
Country’s largest lender decided to extend the moratorium by another three months for all eligible customers without waiting for their request.
The bank is reaching out to all its eligible borrowers seeking their consent to stop their Standing Instructions (SIs) / NACH mandate for the EMIs falling due in June, July and August 2020.
Nearly 85 lakh eligible borrowers were asked if they wish to stop their 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 five days of receiving the SMS, if they wish to defer the EMIs.