Frequently Asked Questions

1. What is moratorium?
A moratorium implies that the customers can delay the payment of their monthly loan
installments (Pre EMI/EMI) for a limited period as defined by HDFC. The interest, at the
applicable interest rate, shall continue to accrue on the outstanding portion of the loan during
the moratorium period.

For e.g. If a moratorium of 3 months is granted by HDFC, and a customer wishes to avail of this
benefit, then his EMI for March, April and May 2020 gets suspended. From June 2020, the EMI
restarts as per the choice opted for by the customer.
2. What is the moratorium scheme announced by RBI to address financial stress caused by
COVID-19?

As per RBI’s circular dated 27th March 2020, HDFC and other lending institutions have been
permitted to grant a repayment moratorium of up to three months to its customers, on
EMIs/Pre EMIs due between March 1st, 2020 and May 31st, 2020. Hence, all loans that were
disbursed on or before 29th February 2020 will only be eligible for the moratorium. Interest shall
continue to accrue on the outstanding principal during the moratorium period. RBI has not
granted a compulsory moratorium. It has only permitted lenders to grant moratorium. Hence
customers will have to opt for availing this benefit.

3. Will the moratorium be applicable on principal repayment, interest repayment or both?

The moratorium will be applicable to both principal & interest components i.e. themoratorium
is applicable on loans in which customers are paying either EMIs or Pre EMIs.

The interest, at the applicable interest rate, shall continue to accrue on the outstanding portion
of the loan during the moratorium period.

4. What is applicable term of the moratorium?

A moratorium of up to a maximum period of 3 months can be offered by HDFC. The lenders are
permitted to grant moratorium for all installments due between March 1 st and May 31st, 2020.

5. Will the interest continue to accrue during the moratorium period?

Yes, interest will get accrued on your loan during the moratorium period. As a result either the
outstanding term of the loan can be extended or the EMI increased to repay the loan along
with the accrued interest.The interest during moratorium period will be capitalized and
depending on the customer’s option to increase the EMI or retain the EMI, the residual term
will be increased or retained to amortize the principal together with the accrued interest.

6. Will I be charged penal interest during the moratorium period?

No, however the moratorium should not be understood as a waiver and hence interest will
continue to accrue on the outstanding principal during the moratorium period.

7.Do I have an option to continuepaying EMIs/Pre EMIs as per the schedule during the
moratorium period?

Moratorium is an option provided by HDFC to its customers who are facing a financial difficulty
or a liquidity crunch during this unprecedented situation. However customers who wish to carry
on with the payment of their EMIs/Pre EMIs as per their original schedule can do so.

8. Can opting for the moratorium scheme adversely impact the credit score of the customer?
The postponement of the EMI/ Pre EMI payments during the moratorium period will not affect
the customer’s credit score. During the pendency of the moratorium period non-receipt of
EMIs/Pre EMIs will not be classified and reported as default to the various credit bureaus.

9. What will be my term after the moratorium?

The residual term will be extended to amortize the accumulated interest along with the
outstanding principal. Thus, the interest during moratorium period will be capitalized and
depending on the customer’s option to increase the EMI or retain the EMI, the residual term
will be increased or retained to amortize the principal together with the accrued interest. The
moratorium does not cancel or waive the repayment obligation for the 3 months, but is a
deferment of the same.
10. How to opt for moratorium?
You can opt for moratorium by either visiting our website or go through the link that is sent to
you. This is to enable you to close your option through the digital mode.

11. What happens if I don’t do anything?

If you don’t do anything i.e. neither opt in or opt out, it is assumed you are not interested in the
moratorium offer and thus the default choice is, opt out.

12.At what rate will I be charged interest during the moratorium period?
The interest will be charged as per the applicable interest rate on your loan.

13. What happens if I have already paid the March installment?

In that case the applicable moratorium period will be for the remaining 2 months.
14. If I have multiple loans do I have to apply for each one separately?
Yes ,you will have to select the moratorium option for each account separately.