Covid-19 crisis: SBI’s 10% term loan customers opt for moratorium on EMIs

About 10 per cent of term loan customers of State Bank of India have sought for deferment of standing instructions under the Reserve Bank’s regulatory package for Covid-19.

Senior SBI executives said most of those seeking deferment are retail and micro and small enterprises and are hard-pressed for resources when earning and cash flows have almost dried up. The bank is assessing how much amount (of loan) is under moratorium option. Those with enough liquidity (like large and medium-size companies) have continued with payment schedules. Perhaps, they would prefer not to pay accumulated interest after the end of three-month moratorium, SBI executives said.

The usage of moratorium was seen low in the case of two private sector lenders also. Axis Bank said around 12 per cent of their customers opted for the moratorium and in terms of value it was around 25 per cent.

Sumant Kathpalia, MD and CEO of IndusInd Bank, in a call post the Q4 result announcement, said in March, collections were upward of 95 per cent in all the portfolios. “In April, we are educating the customers to pay the EMIs. We are seeing good results as they understand they have to pay extra interest if they opt for moratorium,” he said.

Most public sector have extended moratorium, and several are contemplating additional lines of credit to MFIs, said Rahul Mittra, CEO of Margadarshak Financial Services.

(With inputs from Abhijit Lele)

Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!