Karur Vysya Bank’s offer on Moratorium on loans availed of by customers in accordance with RBI guidelines in view of the COVID – 19 pandemic for the period from March to May, 2020

In line with COVID-19 Regulatory Package announced by the Reserve Bank of India, Karur Vysya Bank offers its customers the option of moratorium of up to 3 months on the payment of Loan EMIs and credit card dues. Customers can now choose to defer their Loan EMIs and / or credit card dues falling due between March 1, 2020 and May 31, 2020.

KVB’s offer to its customers is in line with Reserve Bank of India’s circular RBI: 2019- 20:186 DOR.No.BP.BC.47/21.04.048/2019-20, dated March 27, 2020, detailing the guidelines.

The relief provided by the RBI circular are as follows:

Karur Vysya Bank’s policy for providing the said relief to borrowers is as follows:

Moratorium for Term loans: The repayment schedule of term loans will shift by up to three months and the tenor of the term loan will be commensurately extended. The instalment amounts / EMIs will be appropriately recalculated, including interest during moratorium period. If borrowers have already paid their instalments or serviced their interest for any of the stated three months, such borrowers can avail moratorium for instalments falling due in the remaining months upto May 2020.

Relief for working capital facilities:

In case the working capital arrangement is under a Consortium, the reassessment of limits will need to be harmonized with the assessment of the Lead Bank of the Consortium. Once the original limit is reinstated, any further concession / enhancement would have to be dealt with as per the usual restructuring norms stipulated by RBI.

General Conditions: The Bank will take into account the stress on the borrowers on account of the pandemic.

Validity of the policy: This policy shall be valid up to 31st May 2020 or further period as may be extended by RBI.

Prudential norms: The moratorium/deferment granted to borrowers will not qualify as default on the part of borrowers for the purposes of supervisory reporting and reporting to credit information companies (CICs). The reliefs given as above as per the special dispensation given by RBI will not result in any downgrade of asset classification.

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