RBI Loan EMI Moratorium Extended 31 August 2020

RBI Loan EMI Moratorium Extended 31 August, 2020 for Counter Covid-19

RBI Announces relief in loans by RBI Loan EMI Moratorium Extended 31 August, 2020

1. Term loan moratorium extended to 31^st August 2020:-

• Moratorium is now of six months from 1^st March 2020 to 31^st August 2020.
• Huge relief as borrowers shall not be required to pay their loan EMIs upto 31^st August 2020.

2. Deferement of interest on working capital:-

• Interest on working capital in form of cash credit or ODs is deferred by another 3 months i.e. till 31^st August 2020.

3. Margin of working capital – Drawing power:-

• Lending institutions are permitted to restore the reduced margin for working capital to their original level by 31st march 2021 instead of previously announced 31^st August 2020.
• Would make easier for businesses to manage their cash flows.(RBI Loan EMI Moratorium Extended 31 August, 2020)

4. Interest on working capital to interest term loan:-

• Interest accumulated over deferred period of 6 months shall not be required to be paid in one shot but will be converted to funded interest term loan.
• Repayable during current financial year upto 31^st March 2021.(RBI Loan EMI Moratorium Extended 31 August, 2020)

5. No change in assets classification:-

• Loan moratorium shall not result in downgrading of assets classification or impact credit history of borrowers.(RBI Loan EMI Moratorium Extended 31 August, 2020)

6. Reduction in Repo Rate:-

• Repo rate has been reduced by 40 bps to now 4%.
• Bank rate now stands at 4.25%
• Reverse repo rate reduced to 3.35%

7. Export credit:-

• Maximum permissible period of (pre and post shipments) export credit extended from 12 month to 15 months
• For disbursements made upto 31^st July 2020.

8. Support to EXIM Bank:-

• Line of credit of Rs. 15000 crores extended to EXIM Bank for 90 days with rollover upto max period of 1 year.
• For US doller swap facility

9. Payment against Imports:-

• Extension of time period from 6 months to 12 months for making payments against normal imports.
• Normal Import i.e. excluding gold diamonds & precious stones jewellery.

10. Support to SIDBI:-

• Refinance facility to SIDBI of Rs. 15000 crore at RBI policy repo rate was announced earlier for 90 days.
• It has been extended for another 90 days.