Policy on Moratorium to borrowers under COVID 19 Lockdown 

The Notification: 

Reserve Bank of India vide their notification # RBI/2019-20/186 & DOR.No.BP.BC.47/21.04.048/2019-20 announced “COVID 19 – Regulatory Package” to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses. 

Accordingly, RBI reschedules the payments of Term Loans and Working Capital Facilities which is to read as follows: 

“In respect of all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) are permitted to grant a moratorium of six months on payment of all instalments falling due between March 1, 2020 and August 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by six months after the moratorium period. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period.” 

A. Customers eligible for moratorium/deferment: 

Customers satisfying following criteria would be eligible to seek for EMI moratorium/interest deferment: 

1. All customers who have availed home Loans prior to 1st March 2020 are eligible. However customer need  to establish that his/ her income is getting affected due to current    lockdown. 

2. The account can be Standard or otherwise

3. The account must not have been Witten-off from the books of MHIL books at end of the month  preceding the month in which moratorium/deferment is requested for

4. The customers must submit consent for terms and conditions governing the moratorium and for the  revised repayment schedule.

5. The offer of moratorium/decrement and acceptance may be through any mode of communication (Email/SMS/Digital Document/Voice Recording/Physical Document). 

B. Ineligible customers: 

1. Borrowers under DRT, SARFAESI, insolvency proceedings, and borrowers classified as Fraud are not eligible 

C. Details of Reliefs Eligible: 

Term Loans: 

a. Moratorium of EMI/Interest deferment due from the month of March 2020 to August 2020 (up to 6 months).

b. On Availing the EMI moratorium, there will be a levy of interest at the contracted rate of the loan for the period of EMI moratorium on the loan outstanding. The repayment schedule for such loans as also the residual tenor will be shifted across the board by period of six months after the moratorium period and EMI’s will be increased to give impact for the interest accrued during the Moratorium Period. 


Once a customer approaches MHIL with a request for EMI moratorium/interest deferment, it will have evaluated and if satisfied with the merits of the case, EMI moratorium/interest deferment will be considered at the sole discretion of MHIL. 

To opt for the moratorium, customers can communicate to MHIL by using any of the following modes 

1. Select your moratorium option by clicking here


2. Send email (mentioning 11 digit loan no) & your Date Of Birth to moratorium@muthoothomefin.com

Click here for Frequently Asked Questions on Moratorium 

Thanking you for your understanding and support. 

Stay Safe, Stay Home. Together, we can fight Coronavirus. 


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