Moratorium - Frequently Asked Questions

Q. What does the RBI moratorium mean?

A. As per the original guidelines issued by the RBI, the moratorium referred to a 3 months loan deferment to pay EMI/amount. Three months period starting from March’20 to May’20.

 

In light of the current situation, RBI has recently announced an extension on moratorium, extending the same from 3 months earlier to 6 months now, until August’20

Q. Should I opt for the Moratorium?

A. You should take a moratorium only in case you:

 

  • (i) Are in financial distress due to Covid -19
  • (ii) Do not have money to pay your instalments until August 2020.

If you have the ability to pay the EMIs, then you certainly should not. A moratorium will result in higher total interest outgo on your loan against a No moratorium scenario.

 

Sample illustration with a 6 month moratorium period:

Illustration of Moratorium
impact
Amount
Original Loan amount 500,000
Original Tenure (months) 36
ROI 18%
EMI amount Rs 18,076
# of EMIs paid before availing moratorium 9
Balance Tenure 27
After
Moratorium
Original balance tenure 27
Increase in balance tenure (6 months for moratorium + 3.2 months of additional EMI) 9.2 months
Revised balance tenure
with moratorium
36.2 months
EMI amount Rs 18,076
Additional Interest paid by opting for moratorium  Rs 57,490

*Please note: This is for illustration purposes only. Should you wish to opt for the moratorium, you will be provided with an updated repayment schedule with specific details of your loan.

Customers having over dues prior to 1st March 2020 may also opt for the moratorium, and their requests shall be considered based on its merits.

Q. If I am already on Moratorium, do I still need to opt in? 

A. Moratorium will be automatically extended until 31st August 2020 for customers who were already on moratorium*. Please note that additional interest will continue to accrue during the moratorium period as illustrated in the sample above. In case you wish to opt out of the same, you may write to us at Hello@clix.capital.

 

*The extension will be subject to Clix satisfying itself that Moratorium for further three months is necessitated on account of the economic fallout from Covid -19. The customers who have not been extended the Moratorium will be informed successively.

 

Q. Has the RBI granted a compulsory moratorium?

A. No, the lending institutions have been permitted to allow a moratorium of three months. This is a relaxation offered by RBI to the lending institutions. The moratorium will be granted by the lending institution to the borrowers. The RBI has simply permitted the lenders to grant such moratorium.

Q. Will there be any bounce charges/Penalty if I am unable to pay the EMI next month?

A. No, there are no bounce charges from Clix in case you have opted for a moratorium and got your request registered with Clix.  Please note that the moratorium is subject to approval by Clix, which is subject to discretion of Clix. Please visit www.clix.capital to register your request.

Q. If I do not apply for the Moratorium, will my EMI be deducted the next month?

A. For availing moratorium, you have to log a request with Clix (www.clix.capital). In case the request is not registered then EMI will be deducted from your bank account as usual.

Q. Will I have to pay extra interest if I choose the moratorium?

A. Yes. The interest will accumulate over the 6-month period and the loan tenor will increase as per the revised repayment schedule on account for the six missed EMIs and the extra interest accrued on the loan during the moratorium period.

Q. Will Clix Capital waive off interest on working capital loan for six months?

A. No. The accrued interest shall be recovered as per the revised repayment schedule provided to you after completion of moratorium period.

Q. Will the terms and condition of loan agreement change?

A. No. According to the RBI, moratorium is to be provided only to enable the borrowers to face the economic fallout from Covid-19. Hence, all T&C will remain same. However, customers have to register a request with Clix to avail moratorium.

Q. Will EMI deferment affect my credit score?

A. No. Your credit score will not be affected due to EMI deferment/moratorium.

Q. Will I be reported as delinquent in case I take a Moratorium?

A. No. Your payments will be rescheduled, including the interest. You will not qualify as a delinquent customer for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs) in case your moratorium is approved. However, there will be an effect on DPD (DPD will not get freezed) and bureau reporting, in case of moratorium being given to customers who were 90+ days past due (DPD) / NPA as on 1st March 2020.

Q. In case I have more than one loan, do I have to apply for Moratorium for each loan individually?

A. You can register your request for both the loans at the same time.

Q. Can I pay in between the moratorium period?

A. Yes, you can pay your Instalment due even after availing the moratorium and a revised repayment schedule. You will need to make this request on email id Hello@clix.capital

Q. If I opt for the Moratorium, can I still proceed with the foreclosure of my loan?

A. Yes, the loan can be foreclosed as per the T&C’s of loan agreement at any point of time.

Q. Will Clix Capital revise the interest rate while granting extension under the moratorium?

A. No. The intent of the moratorium is to ensure relaxation to our customers due to the disruption caused.

Please note that the revised schedule is as per the current applicable rate and it is subject to change as and when there is revision in rate as per original sanction terms, wherever Loans are at floating rate.

Q. What kind of loans does the moratorium cover?

A. The RBI policy statement explicitly mentions term loans, including agriculture term loans and crop loans besides retail loans. Retail loans are typically home loans, personal loans, education loans, auto and any loans that have a fixed tenure.

Q. I have already paid my March EMI but want to now opt for Moratorium. Can I get my March EMI refunded?

A. No, an EMI once paid cannot be refunded. EMIs will not be deducted after a moratorium request is successfully registered & approved by Clix.

Q. If I am interested to apply for the Moratorium, how do I apply?

A. Please visit our website www.clix.capital and register your request. You will receive a confirmation message from our team regarding the status of your request.

Q. Whom should I contact if I have not received any information regarding the status of my request?

A. Once your request is registered with us we will take 4-5 working days to process your case and confirm the status. In case you would like to know specifics about your application, you can reach out to us at

Hello@clix.capital

 

Q. I have requested for moratorium, will my NACH / PDC will be banked

 

A. EMI Instrument: NACH

(i) NACH presentation can be stopped if moratorium request is made at least 2 days prior to EMI date

(ii) There will be no bounce charges by Clix for all approved cases for moratorium

 

EMI Instrument: PDC

(i) PDC presentation can be stopped if moratorium request is made at least 7 days prior to EMI date

(ii) There will be no bounce charges by Clix for all approved cases for moratorium.