EMI Relief: From Home to Education, All You wanted to know about Loan Moratorium


I had taken an educational loan for my son from Karnataka Bank. Is the RBI notification on EMI moratorium applicable to all banks, including private sector banks?
—Mallikarjun Iyer

Yes, definitely. All bank and NBFC loans where repayment is by EMIs are eligible for moratorium. Please refer to this site for specifics for Karnataka Bank: https://karnatakabank.com/personal/loans/RBI-Covid-19-Regulatory-Package.

I have an education loan from Union Bank since 2015, I am paying monthly EMI. Also, I have a personal loan from HDFC Bank since January 2020. I have paid two EMIs. As per RBI guidelines of interest rate reduction, am I eligible for the same on these two loans?
—Pratik Kakade

If your loan is on floating rate basis, your interest rate will reduce as and when RBI reduces the rates. However, I believe you are referring to the RBI announcement on deferment of EMIs for three months then extended to six months now under the moratorium. Here the interest rate is not reduced but the borrower has the option to defer the EMI payments for the period March to August 2020, without the loan turning NPA. You need to pay these EMIs eventually. The interest also keeps on ticking on this overdue amount.

I availed PMAY benefits by taking a home loan from ICICI Bank. Can I now transfer my loan account to another bank with lower interest rate? On doing so, will I lose the PMAY subsidy?
—Ranjan Swain

Yes, the PMAY subsidy is calculated for a particular loan and for the period of the loan. Hence if you transfer the outstanding to another bank, for ICICI it is a loan closure. Hence the subsidy has to be refunded.

I have a home loan from IIFL and am going for foreclosure. In my criteria, IIFL has added my sole proprietorship firm as co-applicant. How can it treat a person and his sole proprietorship firm as two different applicants?
—Nitin Gupta

Check your loan sanction letter. If only your name as an individual appears on it, you have a strong case to refute IIFL. However, if you as an individual as well as your proprietary firm have been mentioned in the sanction letter, then IIFL is right in their interpretation and you need to follow the guidelines.


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