Newsletter

RBI Covid-19 Regulatory Package

Edition: Apr-2020 Vol: I

Dear Reader,

With every passing day, COVID-19 is increasingly impacting our communities. During this time of
unprecedented uncertainty, all of us here at LoansXpert are concerned about the safety and well-being of
our families, colleagues, Employees, customers, partners, and the many friends who make up LoansXpert a
vibrant family.
Our hearts are with those who have been affected personally by the outbreak of coronavirus (COVID-19) as
well as the many communities around the world that are facing extreme measures in the attempt to slow
its spread.

Given the volatility due to the COVID-19 pandemic, organizations are facing multiple challenges ranging
from the health and well-being of employees to even the risk of closure of operations. These are indeed
extraordinary and constantly evolving times. Accordingly, the different departments of the Government are
continuously issuing guidance with respect to compliances to be undertaken under various laws.
For nearly 12 years, we have been honoured by the trust you place in us. LoansXpert deeply cares for its
customers. Many of our customers’ cash-flow and earnings may have been impacted because of COVID 19
crisis and on account of overall impact to the economy due to the lock-down imposed by the Government
and the resultant restrictions on the movement of people, goods and resources.
Amid this pandemic, where everything has come to a standstill, RBI on 27-Mar-20 announced the COVID 19
Regulatory Package. While there are already a lot of discussions on it, LoansXpert has cleared the air,
making it easy for customers to decide whether to OPT IN or OPT OUT for the moratorium provided by
banks.

LoansXpert have always stood by its valuable clients in their hour of need. We believe that it is our duty as
team LoansXpert.

Why & What exactly is the RBI Covid-19 package or Moratorium?

Covid-19 Regulatory package was announced by RBI to ease the financial stress caused by Covid-19
disruption by postponing the loan repayments (Principal + Interest) for Term Loans and Interest for
Working Capital Loans due in the period 01-Mar-20 to 31-May-20. The most important point here to be
noted is that there is no waiver of any sort. It is just an ease to repay at a later date. This is purely optional
at the discretion of a customer.

Who are eligible?

All Individuals or group who have availed Loans from Banks, NBFCs, HFCs and Co-operative banks and
where an amount is due for payment as a equated instalment on Interest are eligible for this package.

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Website: https://www.loansxpert.com/
Email: business@loansxpert.com
Contact Number: +91-9689881023, 7774912860
 Newsletter
RBI Covid-19 Regulatory Package

Edition: Apr-2020 Vol: I

What shall be the effect of this moratorium on my loan ? Should I opt for amortization or no ?

Since this facility entitles postponement of an Equated monthly instalment comprising of Principal +
Interest, the interest accrued in the moratorium period is added back to the Opening balance of Principal
every 30 days resulting in overall extended tenure of the loan. For better understanding refer below
illustration:

Vaibhav took of a home loan of Rs 80 Lakhs on 1-Mar-20 for a period of 20 years. His monthly instalment
for this loan is Rs 70,952. Suppose Vaibhav opts for the moratorium package, then his EMI of Rs.70,952 due
on 1-Apr-20 will accrue an interest of Rs. 58,667 thus increasing the Principal outstanding from
Rs.80,00,000/- to Rs. 80,58,667/-. Similarly for the EMI due on 1-May-20, The interest will be computed on
Rs.8,058,667 making the revised principal amount to Rs. 81,17,763. Since the EMI of Rs 70,952 remains
unchanged the tenure gets extended on account of principal amount getting increased.

Since there is an accumulation of interest, It is recommended to pay EMIs wherever possible rather than
opting for moratorium. Moratorium may be availed in case a customer is facing difficulty in servicing the
instalment due to cash flow issue.

Process for placing moratorium request

Customer needs to request for each of her/his loan separately in prescribed form / visit the banks website
and give consent whether she/he wishes to opt for the moratorium or not. In case no request for
amortization is received the bank shall follow its regular routine of honouring the EMI.

As the situation evolves, our teams will proactively reach out if there is additional support we can provide.
In the meantime, we shall be glad to assist you with any further questions about the scheme or specific
queries on your loans. Please feel free to email us your queries with your loan details on
business@loansxpert.com or call your Relationship Manager.

We are positive for the future and hope to move on from this situation at the earliest. Please take care of
yourselves and your dear ones.

With warm regards

Team LoansXpert

(Information contained in this newsletter is purely based on individual/groups point of view. User to decide action at own discretion)

Contact us. Follow Us.

Website: https://www.loansxpert.com/
Email: business@loansxpert.com
Contact Number: +91-9689881023, 7774912860