FAQ-Moratorium – Shiksha Finance

Dear Customers,

We are facing an unprecedented challenge and threat from the COVID-19 pandemic (the Corona Virus). To support you in this hour of crisis, and in line with RBI guidelines, Shiksha Finance has drafted a policy to offer its customers EMI Moratorium as a relief measure. We are sure that this will help you tide over this temporary disruption.

We pray to God that we shall emerge out of this situation at the earliest with good health. Please be at home. Stay safe and take necessary precautions.

FAQ for School Loan Customers

Is the moratorium compulsory for all the customers?

The customer has the choice not to avail the moratorium and pay the EMIs regularly. In case the customer wishes to avail the moratorium, the same has to be intimated through an email to service@shikshafinance.com or info@shikshafinance.com. In case there is no written confirmation from the customer, it will be assumed that the customer is willing to pay the EMIs as per the original repayment schedule.
Is this a waiver of EMIs or a deferment of EMIs?
Does this moratorium apply to all customers?
- The moratorium option shall be applicable to all school loan customers of Shiksha Finance except for the loan accounts with more than 89 days due as of 29^th February 2020.
- For customers who have not paid EMI of March 2020 are eligible for Moratorium for three months ie. March 2020, April 2020 and May 2020
- For customers who have paid EMI of March 2020 are eligible for moratorium for two months, i.e., April 2020 and May 2020. The amount paid for March 2020 will not be refunded.
What should the customer do if adequate funds for repayment of loan is available?
- It is not mandatory to opt for a moratorium.
- We suggest that the moratorium should be availed, only if there is disruption in cash flow due to the pandemic/lock-down.
- It has to be taken into account that the interest on the loans continue to accrue in the account of the customer resulting in higher payout for the loan.
Will moratorium affect the credit rating of the customer?
How will this impact the ability of the customer to take new loans/financing in the future?
Will the customer have to pay all missed EMIs at one go after the moratorium period?

No, this will be payable after the original loan period. A revised repayment schedule would be drawn up for the loan for which moratorium is opted. The EMI will remain the same, however the balance tenure will get extended. We will intimate the revised repayment schedule on the registered email id after the deferment period—31^st May 2020.
Will there be delayed payment charges for the missing EMIs during the moratorium period?
If the customer avails the Moratorium, the instalment payments are deferred till May 31, 2020. How will the loan be adjusted for this moratorium?

During the said moratorium period, interest shall continue to accrue on the outstanding portion of the term loan at the interest rate at which the loan was availed. The interest accrued will be added to the outstanding loan amount and the repayment schedule for such loans and the residual tenor, will be revised after the moratorium period.
Illustration:
What happens when a customer opts for a 3-month moratorium of loan amount Rs.5 lacs @ 26% ROI and 36 months tenor:

FAQ for Study Loan Customers

Is the moratorium compulsory for all the customers?

The customer has the choice not to avail the moratorium and pay the EMIs regularly. In case the customer does not revert to the communication from Shiksha Finance sent to all eligible customers, it is assumed that the customer has accepted the moratorium. The customer is free to remit the EMI on the agreed EMI due date and once EMI is remitted, it is confirmed that the customer is not opting for the moratorium.
Is this a waiver of EMIs or a deferment of EMIs?
Does this moratorium apply to all customers?
- The moratorium option shall be applicable to all study loan customers of Shiksha Finance except for the loan accounts with more than 89 days due as of 29th February 2020.
- For customers who have paid EMI of March 2020 are eligible for moratorium for two months, i.e., April 2020 and May 2020. The amount paid for March 2020 will not be refunded.
- For customers who have not paid EMI of March 2020 are not eligible for moratorium.
What should the customer do if there are adequate funds for repayment of loan?
- It is not mandatory to opt for a moratorium.
- We suggest that moratorium should be availed, only if there is disruption in cash flow due to the pandemic/lock-down.
- It has to be taken into account that the interest on the loans continue to accrue in the account of the customer resulting in higher payout for the loan.
Will moratorium affect the credit rating of the customer?
How will this impact the ability of the customer to take new loans/financing in the future?
Will the customer have to pay all missed EMIs at one go after the moratorium period?
Will there be delayed payment charges for the missing EMIs during the moratorium period?
If the customer avails the Moratorium, the instalment payments are deferred till May 31, 2020. How will the loan be adjusted for this moratorium?

During the said moratorium period, interest shall continue to accrue on the outstanding portion of the term loan at the interest rate for which the loan was availed. The interest due on the outstanding amount at the contracted rate of interest will be calculated for the period of the moratorium and the interest amount will be divided equally and will be added to the last two extended EMIs. For example, if the loan is for 12 months and the interest amount for the two months is Rs. 700, Rs. 350 per month will get added to the 13^th and 14^th EMI (extended EMIs) for the loan.