FAQs - Housing Finance

a. The Reserve Bank of India (RBI) has announced a regulatory package (“Moratorium Scheme”) in order to mitigate the burden of debt servicing brought about by economic disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses.


b. As per RBI’s announcement on 27th March 2020, housing-finance companies (HFCs) were permitted to grant a moratorium of three months on payment of all installments falling due between March 1, 2020, and May 31, 2020 (“the Moratorium Period”)


c. This was extended further by three months from 1st June 2020 to 31st August 2020 as per new RBI circular dated 23rd May 2020.


d. The moratorium is applicable only with respect to repayments, and interest will continue to accrue on the outstanding amount of the term loans during the moratorium period.


e. RBI has also clarified that this facilitation is only in the form of a temporary deferment and the accumulated accrued interest shall become payable immediately after the moratorium period.

Yes, the moratorium scheme is applicable to all HFCs/NBFCs. L&T Financial Services/L&T Housing Finance Limited (“LTFS”/ “LTHF”) being an NBFC/HFC, will extend the option of moratorium to all customers.

a. The Moratorium Scheme offered by LTFS (hereinafter referred to as the “LTFS EMI Moratorium Facility”) is available to customers of LTFS who voluntarily apply for it, for the instalments falling due in the moratorium period.

 

b. If a customer avails LTFS EMI moratorium facility, the unpaid debt service obligation falling due for the period between March 01, 2020 and Aug 31, 2020 would be considered as accrued but not due.

 

c. If customers choose to avail the LTFS EMI Moratorium Facility, then applicable installments will be deferred and the loan tenure/ EMI will be extended/ increased accordingly.

 

d. Please note that the interest will continue to accrue during the Moratorium period but will not be considered as due during the Moratorium period and will be payable post the moratorium period.

No. Moratorium is not a waiver of EMI. It’s a deferment of payment to help customers in the trying times due to COVID - 19

When you avail the moratorium, while your EMI shall get deferred, the interest will continue to be charged for the moratorium period and the same will get added to your overall loan repayment amount. This will result in an increase of your overall outflow. Hence, if the customer has the funds to pay the EMI, we recommend to make the payment as per the existing repayment schedule.

a. Customer can register their preference by filling online application form on company website https://www.ltfs.com/companies/lnt-housing-finance.html >> EMI Moratorium Option (request received via E-mail/SMS or any other communication medium will not be accepted)

 

b. For the period of 1st June 20 to 31st August 2020 customers can avail the moratorium facility for only one month at a time for the upcoming EMI. The customer must register the request on the company website, to avail the moratorium facility for the upcoming month within the application window provided below.

 

c. Moratorium application/request should be received on or before the cutoff date as under

 

      Moratorium Month
       Application Window
            June’20   31st May 2020 to 2nd June 2020
             July’20             from 21st June 2020 to 25th June 2020  
          August’20 From 21st July 2020 to 25th July 2020


 

d. In case we do not hear from you on or before the above stated cutoff date, the payment schedule as per the existing terms shall be applicable to you.

a. Interest accrued during the moratorium period will be added to the principal outstanding amount and accordingly a revised repayment schedule will be drawn basis the EMI increase/ tenor extension choice opted by the customer.

 

b. EMI will be payable as per the revised repayment schedule. Hence, customers have to ensure that sufficient balances are maintained in their bank accounts.

During the Moratorium Period, interest shall continue to accrue on the outstanding portion of the loan. The interest accrued will be added to the outstanding loan amount.

Please do refer the EMI moratorium calculator on our website to assess the impact

https://bit.ly/2XJzU8f

Yes, as per new RBI circular dated 23rd May 2020, moratorium has been further extended for three months i.e. from June 1, 2020 to August 31, 2020 on payment of all instalments in respect of term loans.

Yes, a customer is eligible for the moratorium facility from 1st June’20 to 31st August’20 even if he has already availed the moratorium from 1st March 20 -31st May 20. However, the customer needs to submit a fresh application of moratorium for each month separately, as set out in point 4 above, by filling the online application form on the company website.

In that case, EMI repayment will continue as per the loan repayment schedule.

a. There will be no impact on your credit score purely on the account of the Moratorium Scheme.

 

b. However, any delays or overdue in the account prior to the start of the Moratorium Period or after the end of the Moratorium Period will impact your credit score.

The installments and other overdue amounts on or before 1st March, 2020 will have to be paid in full in order to avoid penalty charges.

No, your credit history/score shall not be affected during this moratorium period. However, any delays or overdue in the account prior to the start of the moratorium period or after the end of the moratorium period will impact your credit score.

Yes 

Customers can choose from the following options:

 

EMI increase: Revised repayment schedule shall be drawn after the end of moratorium period by keeping the tenor unchanged. Hence the EMI of the loan will increase proportionately

 

Note: For EMI increase option, a cooling period of 12 months from the moratorium end date shall be provided. During the cooling period, there will be no change in the monthly EMI The revised EMI will be drawn post 12 months from the month in which moratorium facility is availed. Customers willing to pay the increased EMI immediately, can do so, by paying the differential amount and a part payment shall be done on the POS (principal outstanding) amount of the loan without any part payment charges

 

Tenor increase: Revised repayment tenor shall be drawn after the end of the moratorium period by keeping the EMI unchanged. Hence the tenor of the loan will increase proportionately

 

Note: If the loan availed by the customer already has maximum tenor (as per the company policy), for such cases the offset effect will be given through EMI increase & no tenor increase will be available for the such customers.

The impact of option availed (EMI/Tenor increase) can be checked via (https://bit.ly/2XJzU8f) available on the website/ online application form.

Please note that the calculator will provide only a tentative impact so that it helps customers to decide on which option to choose. Exact impact will be shared when the repayment schedule is drawn after the end of moratorium period. Revised repayment schedule will be shared with customers over an email.

Please do refer the EMI Moratorium calculator on our website to assess the impact which may assist you in choosing between the options.

Yes. Customers can choose to cancel their moratorium facility by making a payment of installments that are due to us through one of the following mode: The direct link to access the Quick Pay service on our LTFS website for payments.

https://payments.ltfs.com/LtfsPayment/

For further clarification please call to our Toll-Free number 18002094747

On applying for moratorium, the pre-EMI will slightly increase post moratorium period and also once fully disbursed, tenor/EMI will increase depending upon the option availed by the customer. (Subject to maximum tenor increase that can be offered as per credit norms)

We are pleased to confirm that no cheque bounce charges or overdue charges will be levied to the customer account for EMIs covered under moratorium.

No late payment charges or penal interest shall be charged during the moratorium period. However, if you avail 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.

Status of your account and revised repayment schedule post opting for moratorium will be communicated to you in due course by the Company.

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