Explain the Benefits of the Kotak Mahindra Personal Loan COVID-19 Moratorium?

As per RBI’s moratorium announcement, Kotak Mahindra Bank offers personal loan borrowers the option to choose the 3-month moratorium on personal loans. The moratorium allows borrowers to delay repayments of their personal loan EMIs for 3 months. Due dates of the same fall between 1st March 2020 and 31st May 2020. This deferment of loan repayment is not chargeable or penalized by the bank. However, interest on the outstanding loan continues to accrue during the moratorium.

COVID-19 Moratorium Relief from Kotak Mahindra Bank

Choosing a moratorium on personal loan EMIs payable to Kotak Mahindra Bank is optional. In case the borrower wants to continue repaying his/her personal loan EMIs as per the original schedule, there is no action required.

In case the customer’s EMI payments made to the bank from 1st March to 31st May 2020 are not cleared, the customer would be deemed to have chosen the moratorium option automatically. The bank charges no penalties for the same. For those who go for the EMI Moratorium on Kotak Mahindra personal loan, the bank offers the following relief measures:

• Borrowers can postpone the repayment of personal loan EMIs (including the principal and interest) for a maximum of 3 months till 31st May 2020
• Interest continues to accrue during the moratorium period as per the pre-agreed interest rate on the loan
• Personal loan repayment tenure also gets extended by the corresponding period for which a borrower has availed the moratorium. For instance, if an individual has paid personal loan EMIs for March and April 2020 and wants to use the moratorium for May 2020, his/her original loan repayment tenure is extended by 1-month post the original end date of the outstanding loan