ICICI Bank loan EMI moratorium: Terms, conditions and charges

by MyMoney Mantra FinTech (Financial Technology)

With the announcement of the Reserve Bank of India on March 27, 2020, proclaiming that all lending institutions such as banks and housing finance companies, will have to provide all the borrowers with a three-month moratorium on term loans. The moratorium refers to all the instalment payments falling due between March 1, 2020 and May 31, 2020. As per the RBI, the postponed instalments under the moratorium will consist the below-mentioned payments due from March 1, 2020 to May 31, 2020:

principal and/or interest components
bullet repayments
equated monthly instalments (EMIs)
credit card dues

This step was taken in order to inject the liquidity into the system as the economy hits badly with the novel coronavirus outbreak. Keeping in view of the following suits, ICICI Bank amongst all the banks have announced details of the loan EMI moratorium on its website. Let's see them in detail:

The borrowers can choose OPT-IN or OPT-OUT facility, for Getting the ICICI Bank Moratorium with respect to the credit facility availed.
ICICI Bank has also extended the Moratorium for the borrowers for specific loans and credit facilities such as Kisan Credit Card (KCC), Farm Equipment (FE), Self-Help Group (SHG)/Joint Lending Group (JLG)/Loans extended through Business Correspondent (BC), Jewel Loan, Corporate Farmer Finance, Business Lending -Unsecured (Current Account Over Draft/Small Business Loan/Roaming Protect/Loan Against Credit Card Receivable, Dealer Funding, Working Capital/Trade Advance to Commercial Business customers, Consumer Finance, Two Wheeler Loans. This has been made under the purview of the bank's approved policy.
Those borrowers who have a good financial standing do not wish to obtain the Moratorium can OPT-OUT from the Moratorium by clicking on the link shared with them via SMS or e-mail by ICICI Bank. They can also visit the website of ICICI Bank www.icicibank.com, if not reporting within time will be considered that the borrower has chosen Moratorium.

With respect to all other types of facilities, the borrowers are required to specifically OPT-IN for obtaining the Moratorium and deferment of payments which are due for payment between the period from Mar 01 until May 31, 2020.
In case the borrower is having multiple credit facilities from the ICICI Bank, the Moratorium facility will be levied individually or separately for each credit facility.

Key Points to Remember

To avail moratorium facility with the ICICI Bank, the borrowers are required to keep the following points in mind that answers most of the queries.

1. For Availing Moratorium

Click on the link shared by the ICICI Bank via (i) SMS or (ii) e-mail. The moratorium can also be availed by visiting the ICICI Bank’s website www.icicibank.com .

2. In case of charging interest and recovery for retail term loans such as Home Loans, Personal Loans, Consumer Durable Loans, Two-Wheeler Loans, Auto Loans

The borrower's accrued interest would add back to the principal amount which will increase the remaining tenure of the loan. The exceptional cases come in where extension of tenure is not applicable , then in such case, the EMI amount will increase.

3. In case of charging interest and its recovery in case of cash credit/ overdraft facilities

The interest accrued will be immediately paid after the end of the moratorium i.e. in June 2020. The borrowers are required to go through the relevant terms and conditions for further details. The deferred interest or funded interest shall levy interest at the rate applicable on the credit facility and the underlying security shall be in continuation to obtain the funded interest.

4. About any late payment, default interest or additional interest

No charges applicable during the moratorium period for such reasons.

5. Extension of Tenure under Moratorium

In case of an already availed of a moratorium for an Education Loan, no tenure would get extended on account of the Covid Regulation. Since the borrower's repayment will begin in the future and moratorium is for those borrowers who have an active interest or EMI repayment between the period from Mar 01 to May 31, 2020.

6. In case of principal moratorium continuing in Education Loan

Yes, the moratorium period is available for interest amounts likely to be paid. It does not matter if the principal moratorium is running in the education loan.

7. No need to submit fresh Auto Debit or NACH debit mandates

There is no requirement to submit the fresh mandates for Auto Debit (AD) or NACH. As the EMI will continue in the same amount and tenure will get extended to recover the postponed interest accrued during the moratorium period. If you have opted for the moratorium period, the remaining tenure will get increased for the recovery of the accrued interest during the moratorium. However, if there is any increase in the instalment amount, then a mandate is required for a fresh NACH facility.

8. In case of EMI payment to be considered as prepayment

If the borrower pays the due EMI, then it will not be considered as prepayment. Also, there won't be any prepayment penalty applicable on it.

9. In case of paying all 3 EMIs for retail term loans in June 2020

The borrowers are required to pay the EMIs as per the revised schedule inspite of the extended tenure of the retail term loan in the purview of the moratorium. However, if the prepayment is allowed under the terms and conditions of the facility, then you can pay the EMIs in June 2020.

10. In case of sufficient balance in borrowers account and any loan instalment due

If the borrower has sufficient balance in his/her bank account and any loan instalment is due, then there may be a higher chance for the bank to debit your EMI during the moratorium. This happens when the borrower has not opted in for the moratorium.

11. No documents are required to avail moratorium

The borrowers can opt for the moratorium by clicking on the link shared by the ICICI Bank via (i) SMS or (ii) e-mail. The borrowers may also visit ICICI Bank’s website www.icicibank.com to avail moratorium without submitting any documents.

12. In case of refund for EMI paid in March 2020

No EMI would be refunded paid before March 27, 2020. In case of EMI debiting after March 27, 2020 and the borrower opting for the moratorium makes the EMI to be considered as a refund as per the request of the borrower.

13. In case of moratorium applicable on multiple facilities

The borrowers are required to specifically choose every facility for opting the moratorium for the respective type of credit facility. The borrowers can opt for the moratorium by clicking on the link shared by the ICICI Bank via (i) SMS or (ii) e-mail. The borrowers may also visit ICICI Bank’s website www.icicibank.com to avail moratorium

ICICI Home Loan Eligibility

The borrowers are required to fulfill the eligibility criteria of the ICICI bank for Availing ICICI Home Loan. The eligibility criteria states:

The age of the borrower should be at least 21 years at the time of loan sanction.
The loan must be settled before or at years of age or retirement age, whichever is earlier.
The borrower must be a salaried employee or a self-employed professional with a regular source of income
In case of the borrower adding co-applicant in his/her home loan application, then the minimum age of the co-applicant should be 18 years.

ICICI Home Loan Interest rates

ICICI Home loan is offered at a floating rate of interest to both salaried and self-employed professionals. Let's take a look at the ICICI home loan interest rates applicable to them:

1. For loan amount upto Rs. 35 lakhs

Salaried employees: 8.75% p.a.

Self-employed professionals: 9.00% p.a.

2. For loan amount between Rs. 35 lakhs to Rs. 75 lakhs

Salaried employees: 8.90% p.a.

Self-employed professionals: 9.10% p.a.

3. For loan amount above Rs. 75 lakhs

Salaried employees: 9.10% p.a.

Self-employed professionals: 9.20% p.a.