As per the announcement made by the Reserve Bank of India RBI, the Bank has taken measures to provide relaxation in repayment of your Kisan Credit Card (KCC) and investment loan for agricultural purposes. This includes loan against Ware house receipts for pledged commodity and loan against Gold. We request you to kindly refer the following questions for further clarity. 

No, the relief measures announced by RBI are not for waiver of interest. It is only for the purpose of providing interim relief by deferring the interest payment. Accordingly, you will be required to pay the accrued interest on utilized amount for this period on June 30, 2020.

No, only loan accounts which have been opened prior to March 01, 2020 will be eligible to avail this moratorium facility.

Yes, we understand that agriculture products need to be transported and sold at Mandis. However due to disruption in transportation facility and functionality of Mandis any interest, which is due to be paid between March 01, 2020 to May 31, 2020 on KCC loan and working capital loan, taken for agricultural purposes, can now be paid on June 30, 2020.

Illustration
If you have taken a KCC loan for cultivation of Half Yearly crops with interest applicability twice in the year i.e. April 10, 2020 and October 10, 2020. Let’s assume the interest demand due on April 10, 2020 is Rs. 4000/-. Then this demand of Rs. 4000/- would be deferred and you will have to pay Rs. 4000/- on June 30, 2020. Interest for the period of April 11, 2020 till October 10, 2020 shall be due for payment on October 11, 2020 as per your existing interest servicing schedule.

If you have already paid the interest due amount, you can continue to draw from your limit as per your requirement. However, after the interest is applied on your account on June 30, 2020, you will have to service the interest again.

If you miss to service the interest payment on June 30, 2020, your account will become overdue and charges, as applicable to overdue accounts will be levied to your loan account.

Yes, we are providing relief by advancing the due date for all installments pertaining to loan for agricultural purposes, including tractors by 90 days. A revised repayment schedule stating new dates for payment shall be communicated to you shortly.

Repayments for all loans against pledged Agri commodity and loan against gold which are due between March 01, 2020 to May 31, 2020 are being extended by 90 days. There will not be any change in Maturity date if you loan is maturing after May 31, 2020.

The Bank is making all efforts to provide the desired support to the agricultural community and to reduce the financial burden due to the lock down. Therefore, we have deferred all the interest repayment on KCC loan and working capital loan related to agricultural purpose to June 30, 2020 and all installments due for term loans have been deferred by 3 months. Please note that no separate request has to be made. In case the payment has already been made for the installment, only the unpaid installment shall be advanced by 3 months.

The moratorium benefit will be applicable only for the interest payment/installment which are due between March 01, 2020 and May 31, 2020. Any installment or overdue amount prior to March 01, 2020 is required to be paid to avail the moratorium benefit and to avoid additional charges & adverse credit bureau reporting.

In case of half yearly and yearly interest application/installment, all dues which are prior to March 01, 2020 will have to be paid on or before 365 days from the date of demand. Where interest application/installment is monthly, such dues prior to March 01, 2020 shall have to be serviced on or before 90 days from the date of demand. If the above mentioned dues are not serviced within the stipulated timelines, the account will become a Non Performing asset (NPA). Such defaults and NPA classification shall be reported accordingly to the credit bureau.

No. However, any overdue prior to March 01, 2020 will continue to be reported to the credit bureau.