The State Bank of India (SBI,) on the 28th of May, announced to extend moratorium on loans for extra three months.
The bank decided to automatically extend the moratorium for all the eligible borrowers without any requests from the,.
The SBI issued a statement regarding the same on the 27th of May and said the information of extension in moratorium loans has been sent to all of its eligible loan customers.
The statement issued read, “For this, the bank has simplified the process of stopping the EMIs by initiating a short message service (SMS) communication to nearly 8.5 million eligible borrowers asking about their consent to stop EMIs. The borrowers have to reply with a yes to a designated virtual mobile number (VMN) mentioned in the SMS sent by the bank within five days of receiving the SMS if they wish to defer the EMIs.”
Rajnish Kumar, the Chairman of the SBI, said that RBI’s extension of the ongoing moratorium by three more months would take care of cash flow disruptions for borrowers even in the absence of a one-time debt recast relief.
With this all the eligible borrowers are allowed to extend the payments of EMIs of the month of June, July and August 2020.
