Bank of Baroda announced that it will provide a moratorium of three months on all instalment payments falling due between March 1, 2020 to May 31, 2020 for all term loans including corporate, MSME, agriculture, retail, housing, auto, personal loans etc in pursuance of the RBI COVID 19 Regulatory Package.

The public sector lender, on its website, provided various details about the relief package and answered queries linked to the RBI-mandated moratorium

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Also read: RBI's EMI moratorium: Will my installment be deducted, are credit card bills suspended and other questions answered

Here are some important questions and their answers

Who are eligible to avail the benefit?

All Term Loans will be eligible to avail the benefits of the relief package.

How do I avail of the benefit?

Eligible customers can inform Bank Staff/ Collection Agent that they want to avail the benefit being extended under the regulatory package.

What benefit does one get by availing the package?

With a view of providing businesses with relief, they will be allowed to request the Bank to re-assess their Working Capital requirements and reduction in the margin on NFB facilities on account of the current crisis. However, the final decision will be made by the branches.

Will the interest payment on eligible loans be exempted?

Yes, repayments of all Term Loan instalments and their interests have been extended by 3 months.

What about instalment amount deducted for the given period?

Bank will refund the instalment deducted for the month of March 2020 to May 2020 at the request of the customer made at Base Branch.

Will the bank automatically stop instalment collection?

No, the bank will continue to collect instalments as per the standing instructions unless stopped by the borrower.

First Published:Apr 1, 2020 2:26 PM IST