In a bid to mitigate the impact of the coronavirus outbreak on businesses and individuals, the State Bank of India, which is the country’s largest lender, has offered a three-month moratorium on term loan instalments to its borrowers.
The SBI said on Tuesday (March 31, 2020) that it has initiated steps to defer equated monthly instalments (EMIs) and interest on term loan falling due between March 1 to May 31 and extend repayment period by three months.
The interest on working capital facilities for the given period has also been deferred by three months, it said.
Important announcement for all SBI customers.@guptapk @DFS_India @DFSFightsCorona#Announcement #SBI #StateBankOfIndia pic.twitter.com/hEWSXVxVIp
— State Bank of India (@TheOfficialSBI) March 31, 2020
SBI has already cut interest rate by 75 basis points to pass on the complete rate cut benefits to its borrowers availing loans linked to external benchmark linked lending rate (EBR) and repo linked lending rate (RLLR).
The decision is likely to provide major relief to its customers, especially middle-class borrowers.