Published on May 21, 2020Updated on Oct 14, 2026
The COVID-19 Pandemic has caused an upheaval in various aspects of life. The Government is releasing a slew of measures to tide over this crisis. In order to help borrowers who are facing financial stress due to the lockdown, the Reserve bank of India and has announced a moratorium on loans, which has been extended by banking and financial institutions to their customers.
When one takes a loan from a financial institution – one receives a lump sum amount which has to be repaid back in monthly instalments – known as EMI (equated Monthly Installments). This Loan EMI must be paid back every month on or before the scheduled date and any delay or default in paying these EMI's results in late fees, penalty charges as well as a negative impact on your credit score.
So what does Moratorium mean for you? It means that you are given a period of time – where you need not make your monthly EMI payments and at the same time, not face any penalty charges or lowering of credit score. However, interest will continue to be accrued on the principal amount outstanding for the period. At SMFG India Credit, this is calculated based on simple interest on the outstanding amount.
The RBI Moratorium has been extended to all eligible SMFG India Credit customers. Customers who want to avail this optional moratorium period can apply here.
Thus, If you can afford the payment of your EMI’s and it is not causing financial strain to you – then it may be a good idea to continue discharging your liability for the same.
Must Read: How to Apply For Loan EMI Moratorium
If you are still unsure about whether or not you should opt for a moratorium facility then a simple way to quantify your increased expense will be to use SMFG India Credit’s online Moratorium EMI calculator. The Moratorium EMI calculator enables you to calculate your new interest expense or new term period by entering in very simple details of your loan.
You may enter in the Loan Amount, the Rate of Interest, the term or tenure of the loan, the number of instalments that have already been paid by you and lastly – the number of months you want the moratorium for.
You can opt to keep the EMI amount the same after the moratorium period or you may opt to keep the Term period the same.
On entering these details, you will be able to see the new EMI amount or the tenure and can make a well-informed decision about the additional cost you will have to bear to obtain the moratorium facility. Please do note however that:
It is important for each and every borrower to go online and check the financial impact on them and after evaluating the pros and cons to actively opt for a moratorium or not. If you have several loans – then it may be a good idea to use the online moratorium EMI calculator and decide the loans for which you would like to avail the moratorium and the ones whose EMIs you would like to continue paying as per the original schedule.
Once you have used the EMI moratorium calculator and have concluded that taking the moratorium facility is the best option for you, you will need to apply online for the same.
We will evaluate your application, and based on your eligibility, you may be granted the same. If yes, our customer care representative will get in touch with you to discuss further.
To know if you are eligible for the moratorium, please go through our moratorium policy or contact our customer care centre.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
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