Categories: Business

20 percent of SBI customers opted for loan moratorium, now next 3 months more facility


About 20pc SBI borrowers opt for loan repayment moratorium

new Delhi. State Bank of India chairman Rajnish Kumar said on Friday that about 20 percent of the bank's customers have opted for the moratorium option to pay the term loan installment. On March 27, the RBI had announced exemption from payment of all term loans for three months from March 1, 2020 to May 31, 2020.

On Friday, the Reserve Bank of India allowed banks and other financial institutions to extend the moratorium on loans for another three months, till August 31, 2020. Rajnish Kumar said that in case of State Bank of India, the percentage of customers opting for the Moratorium option is very low, it is around 20 percent.

He said that out of those who have opted for Moratorium, not all people have liquidity crisis. Most of them can repay their loan installments but as a strategy they want to save their cash and hence they chose Moratorium. Kumar also advised that the borrower should repay his loan if he does not face any financial problem. If people are able to pay their EMI, then they should pay it. If they have cash problem then only they should avail of Moratorium.

According to Kumar, RBI's Moratorium is sufficient to handle cash flow disruptions to borrowers and there is no immediate need for one-time restructuring. He said that right now, Moratorium is sufficient to handle the cash flow problem. I am not in favor of one-time restructuring at this time, whereas we have till 31 August.

This post was published on May 22, 2020 7:07 pm

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