As per RBI’s circular dated 27^th March 2020, PROFECTUS CAPITAL and other lending institutions have been permitted to grant a repayment moratorium of up to three months to its customers, on EMIs due between March 1^st, 2020 and May 31^st, 2020. 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. The PROFECTUS CAPITAL has pass on the benefit to all the customers by granting moratorium, except NPA classified customers.

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

In that case the applicable moratorium period will be for the remaining 2 months.

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

Yes, interest will accrue on your loan during the moratorium period. As a result the EMI will be increased to repay the loan along with the accrued interest. The interest during moratorium period will be capitalized leading to an increase in the EMI to amortize the principal together with the accrued interest.

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.

Moratorium is an option provided by PROFECTUS CAPITAL 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 as per their original schedule can do so, which would be considered as part payment and adjusted against Principal outstanding.

The postponement of the 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 will not be classified and reported as default to the credit bureaus.

The term can be extended by 2 or 3 months and thus the EMIs will increase to amortize the capitalized principle, within the extended term by 2 or 3 months.