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FSFB EMI Moratorium Scheme
1. What is RBI Advisory on Moratorium Scheme?

In order to ensure the financial health of borrowers (Individuals and Business owners) during the Covid-19 pandemic crisis, RBI has permitted all Financial Institutions to allow loan moratorium for a period of 6 months (March, April, May, June, July and August 2020). Further details regarding the scheme is available at the below RBI website link: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11835&Mode=0
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11872&Mode=0
https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11902&Mode=0

2. Which products are covered under Loan Moratorium scheme?

The Bank’s Loan moratorium scheme covers all Term loan products JLG Loans , Loans against property, Staff Loan, Overdrafts against Property, Loans against Gold, Affordable housing loans and Two-wheeler loans.

3. What are the conditions for availing the moratorium?

The Bank will consider moratorium factoring the financial stress on the borrowers on account of COVID 19.

  • The borrower should not have been classified as wilful defaulter/ Fraudster with Fincare Bank or other Banks.
  • The borrower should not be under IBC proceedings.
  • The Bank should not have initiated any legal proceedings against the borrower.
4. When can a borrower avail the EMI Moratorium scheme?

Borrower can avail the EMI moratorium scheme to manage any financial crisis they may be facing. Business owners who are facing cash shortage, can also avail EMI moratorium scheme.

In case the borrowers are able to make EMI and / or interest payments in time, it is suggested to continue it to reduce the Interest burden and avoid extension of Loan Period by consenting to debit the EMI/pay the EMI.

5. What is the moratorium period the borrower can avail?

Moratorium Period for instalments which are due in March , April, May, June, July and August 2020.

6. How can a borrower opt out of the moratorium?

By default, all the eligible borrowers are offered the loan moratorium facility. However, if a borrower wants to reduce his/her interest burden then he/she can submit a request to opt out of moratorium through the website www.fincarebank.com/ call the call centre at 1800313313/ or write an email to customerservice@fincarebank.com

7. Does this mean that the EMI is waived off?

No, this does not mean that the EMI is waived off. This is only a deferment of EMI where a borrower is not required to pay the instalment during the moratorium period.

8. Can the borrower continue to service EMI and/or Overdraft Interest as per normal schedule? Is it mandatory to avail EMI Moratorium?

It is not mandatory to avail the EMI moratorium scheme, however, a borrower by default gets enrolled as per the guidelines. The borrower can continue to service EMI and/or Overdraft Interest as per normal process in case he/she chooses to opt out of the moratorium. In case the borrower is able to make normal EMI and/or interest payments in time, borrower’s interest burden will be lower, hence it is favourable to continue timely payments.

9. Will the borrower be charged Interest during the EMI Moratorium?

Yes, Interest will continue to be charged on the outstanding loan amount during the moratorium period.

10. What will be the borrowers EMI after the Moratorium period?

The EMI’s will remain the same post the moratorium period. The additional interest along with the principal can be paid during the last instalment of the loan, or through a loan period extension at that point of time or both.

11. Are there any charges applicable to avail the EMI Moratorium?

No, there are no additional charges applicable to avail the EMI moratorium.

12. Does the borrower need to sign any documentation for the EMI Moratorium scheme?
  • In respect of this moratorium, requisite documentation may be taken by the Bank, including through electronic form.
  • Loan specific conditions may be laid down by the Bank for providing the moratorium.
  • Borrower may give his/her consent, in case he/she wants to continue his/her EMI as per his/her normal schedule.
13. Does the borrower have to bear any additional EMI Bounce charges or Late payment charges during the EMI Moratorium period?

No, there will be no EMI Bounce charges or Late payment charges applicable during the moratorium period.

14. Will it have any impact on borrower’s credit history or affect borrower’s Credit Bureau score?

The moratorium/deferment granted to borrowers will not qualify as default on the part of borrowers for the purposes of supervisory reporting and reporting to credit information companies (CICs).

  • The relief given as above as per the special dispensation given by RBI will not result in any downgrade of asset classification.
  • However, if there is an existing default like interest/principal due up to February 29, 2020, the usual asset classification and provisioning norms will apply.