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Pros And Cons Of Closing A Credit Card

Having a credit card makes your life incredibly easier. It’s highly convenient and is a great way to go cashless. Instead of carrying wads of cash in your wallet, you can swipe the card to pay for all your purchases. Besides shopping at brick and mortar stores, credit cards can also be used for online transactions. 

The biggest benefit of using a credit card is that you can shop now and pay for your purchases later. It's like having a personal credit line that you can dip into any time. Another huge perk of using a credit card is that you can enjoy reward points for your shopping, which you can redeem later on for cashback offers and other gifts. Regular usage of credit cards can help you establish and build your personal credit score. 

While credit cards offer an array of benefits, having more cards than you need and improper management of the various cards can severely impact your financial health. If you're having a hard time tracking and managing your credit card debts, then the best way moving forward is to close a few that you no longer use. 

Before you decide to close an existing card, you need to be aware of the pros and cons of closing credit cards.

Pros: Protects you from Incurring Potential Debts 

One of the biggest traps of using credit cards is that you can build large debts mindlessly. Having multiple credit cards tempts you to overshoot your shopping budget. As a result, you end up acquiring a massive debt from numerous credit card purchases.

If you're finding it challenging to repay your credit card debts, you can close a few cards and maintain only ones that help you build a good credit history. To close a credit card account, reach out to the card issuer. You can find the customer service number printed on the bottom of the card, or look it up online. Place a request to close the card. You will have to repay all balances accrued on the card before you can close it.

Closing multiple cards and using only one or two helps you get back on track and lead a debt-free life. 

Pros: Prevents Identity Theft 

You may have multiple credit cards in your wallet that you no longer use. That doesn't mean hackers cannot access it. Even though the chances are slim, hackers can steal your card info and use it illegally. To avoid falling victim to credit card identity theft, you can close cards that you don't track regularly.

Pros: Reduces your Overall Debt 

When you have multiple credit cards open, it increases the total debt value on your portfolio. This, in turn, increases your debt-to-income ratio (DTI). DTI is the total debt that you owe calculated against your income. Higher the DTI value, it becomes more difficult for you to qualify for loans in the future.

Closing a couple of credit cards that you don't use frequently can reduce the overall debt burden on your income, thereby reducing the DTI. This, in turn, improves your chances of securing a loan.

Pros: Helps you Avoid Extra Expenditures 

One of the significant reasons many people close a credit card account is to reduce temptation. Very often, having a credit card tempts people to splurge on luxury purchases that they wouldn't usually do. When you close a credit card, you cannot spend on it, thereby avoiding unnecessary expenditures.

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Personal Loan Vs Business Loan: Which is Better? - Credit Mantri

Business loans offer a higher quantum of funds for businesses to attain faster growth. Personal loans can act as a financial backup in case business loans do not suffice.

Personal Loan Vs Business Loan: Which is Better? - Credit Mantri

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6 Tips To Improve & Maintain Your Business Credit Score - Credit Mantri

Having a good business credit score is beneficial to your business in several ways. Banks and NBFCs assess the credit score of your organisation before sanctioning loans. The credit report is like a report card of the financial health of your business. It helps lenders evaluate your creditworthiness and decide whether to offer you credit or not. 

Equifax®, CIBIL™, Experian, and Highmark™ are some of the popular credit bureaus in India that offer credit information reports and credit scores for businesses. To arrive at your credit score, credit bureaus consider several factors like the overall value of your debts, repayment of loans, length of credit history, etc. 

The higher the numerical value of the score, the better is your capability of availing loans at competitive interest rates. Credit scores range from 300 to 900, and the recommended credit score range is 750 or above.

Whether you’re looking to expand your operations, invest in equipment or infrastructure, or improve the cash flow of your business, having a good credit score always helps. It not only improves your chances of loan eligibility, but also helps you enjoy reduced interest rates and better loan deals. 

Now that you understand the importance of maintaining a high credit score for your business, let’s take a look at some of the top ways to improve the score. 

6 Steps to Maintain a Good Business Credit Score #1: Pay your Business’ Bills on Time 

Repaying your loan EMIs and credit card bills on time is a crucial factor in improving your personal credit score. The same is true with business credit scores. Late payments negatively impact your credit score, which in turn, is detrimental when applying for a business loan, line of credit, or business credit card. 

One of the best ways to improve your credit score is to pay your dues on time. Defaults or late EMI payments, bounced cheques push your credit score down. Paying the business’ bills on time not only improves your scores, but also helps you maintain good relationships with vendors and other creditors. 

#2: Aim for Lower Credit Balances 

A good practice is to ensure that the credit utilization ratio of your business does not exceed 30%. Let’s say that you have availed an OD of Rs. 10 lakh from your bank. Ideally, you should not use more than 30% (Rs. 3 lakhs) of the available credit. For instance, if you have withdrawn Rs. 3 lakhs from the available OD limit, it’s a good practice to repay the borrowed amount before you make any further withdrawals. 

When your credit utilization ratio goes above 30%, your credit score starts falling down. Even if you have to withdraw a larger amount, your credit score can bounce back if you repay the debt on time. 

*Note that the 30% credit utilization ratio is only a benchmark. Different credit bureaus have varying parameters. For example, Equifax® marks credit utilization ratios up to 50% as green. When the credit utilization ratio goes beyond 75%, your account is red-flagged and your credit score takes a drastic hit. 

#3: Keep Business Debt Levels Low 

Credit card balances, term loans and other credit lines are all liabilities on your credit report. The more loans you take, the more negative is the effect on your business credit score. Lenders generally do not sanction loans to businesses that have plenty of outstanding debt. To improve your credit score, try to repay older loans, as quickly as possible. 

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The 6 Best Financing Options For Franchisees

https://www.creditmantri.com/article-the-6-best-financing-options-for-franchisees/

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Personal Loan Vs Business Loan: Which is Better? - Credit Mantri

A business requires loans for different purposes such as managing working capital needs, expansion and infrastructure expenditure, investment in systems and equipment, etc. These requirements could mean large amounts of money and the business must ensure that the cost of capital is affordable and practical. Therefore, business loans are considered to be equipped for funding business growth as against personal loans.

When an entrepreneur is starting a business and cannot use his or her savings, or raise funds easily, business loans ensure sustainable growth of the business. Entrepreneurs who wish to nurture and create a successful business empire and a sustainable brand must apply for a business loan rather than go for the easier choice of personal loan.

What is the difference between a personal loan and a business loan?

Here are some of the important differentiating points between personal and business loans:

Interest rate

Personal loans are designed by financial institutions to help meet an individual’s personal needs like wedding, home refurbishment, or other emergency cash needs. The interest rates associated with personal loans are generally high. Personal loans may not be ideal for entrepreneurs since they could end up incurring a higher cost of funds especially if their business is in the nascent stage. This is when business loans can prove to be helpful for them.

Tenure

A personal loan comes with shorter tenure as far as repayment is concerned. Business loans, on the other hand, tend to have longer tenure. Thus, entrepreneurs may have to pay more money in the form of EMIs per month when opting for a personal loan. This could impact the cash flow of the business and damage its growth in the early stage.

Lending terms

Funding a business with the help of a personal loan could mean higher interest rates and also the associated EMI payments. In such cases, there is a higher probability of default which could bring in cash flow troubles in the future. This is why most business owners find it challenging to establish credibility and fetch better lending terms in personal loans. This indicates that business owners are better off with business loans.

Usage of funds

If business owners borrow a personal loan, they may end up using it for a personal emergency. This could indicate a lack of discipline and misuse of existing funds especially when they are being used for situations that are not associated with driving business growth. A business loan can make sure that entrepreneurs do not have to deal with such problems.

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The 6 Best Financing Options For Franchisees

A franchise offers double benefits - it offers the flexibility and independence of a small-scale set-up along with the infrastructure of a bigger corporation. It is an ideal opportunity for those interested in entrepreneurship, especially first-time entrepreneurs. 

Opening a franchise comes with its challenges and requires substantial capital investment. As a first, one has to be prepared to pay out a big franchise fee plus royalties and advertising costs, as applicable. Not many can easily arrange this kind of cash. Sourcing a business loan for funding franchise investment is one option in such cases. 

Here are six of the best ways to finance your franchise store easily and conveniently.

Franchisor Financing

If you need funding for your franchise, you can directly reach out to your prospective franchisor for the same. A lot of corporations that have franchise-style business models provide tailored financing options which are designed for their specific business. It could come through partnerships with select lenders or capital is directly offered by the corporation. This is a common way of financing a franchise and provides many benefits. 

One main advantage of seeking finance from the franchisor is that it offers one-stop-shop solutions in most cases. Some of these programs provide financing for franchise fees and also for purchasing equipment or other infrastructure to start up the business.

While working with a franchisor for any financing program, you may not need to hunt for further funding. Most franchisors know their business in and out and the associated risks, hence they become the most suited options for financing.

Commercial Bank Loans

Another preferred way of financing a franchise is to opt for a term loan from a bank or financial institution. Under the term loan model, a bank offers a lump sum amount which can be repaid along with interest, in equal monthly instalments for the pre-decided period.

While purchasing a franchise and applying for a commercial bank loan, the lender may want to go through your business plan along with your personal credit history. The lender uses documents gathered in this process to assess your credibility. Banks try to determine if you can afford the loan and gauge your repayment capability.

Venture Capitalists

Apart from banks, franchisees can seek loans or funds from a group of lenders. These can be angel investors who are often business people running successful businesses. They look to invest their funds in rewarding business opportunities. Franchisors can also reach out to venture capitalists, who offer a chance to investors to participate in a fund which is used to buy stocks of a private company. Private equity is another option for franchise funding and it means shares or stocks of a company which is mostly privately held. It is important to have a well-crafted plan for lenders. This will help in justifying the investment needs of your business. The repayment timeline and interest is also to be agreed upon.

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10 Easy Steps to Apply for an MSME Loan Online - Credit Mantri

To apply for an MSME loan online, you have to first visit the website of the lender. Fill in the online application form, upload supporting documents. Once the loan is approved, the loan amount is credited to your bank account within a few working days.

MSME Loans are also known as Micro-Small-and-Medium Enterprise loans. They are a massive help to small businesses and entrepreneurs. An MSME loan can be used for various business purposes like purchasing inventory, upgrading equipment, expanding the office space, paying salary to staff and more. 

Today, applying for an MSME loan is easier than ever before. All you have to do is select your preferred lender, fill the online application form, upload supporting documents, and voila – the loan amount is credited to your bank account directly once the loan is approved. In this guide, we walk you through the steps for applying for an MSME loan online. 

How to apply for an MSME loan online? 

Step 1: Decide your lender. Before you apply for an MSME loan online, you have to finalize the lender. Make sure to compare the interest rates, eligibility criteria, features and other details of MSME loans offered by different lenders. 

Quickly compare the latest interest rates for MSME loans from different banks and NBFCs. 

Step 2: Visit the official website of your chosen bank/NBFC. You can also start the loan application process online using Credit Mantri. 

Step 3: If you already have an account with the bank, use your login ID and password to log into your banking account. If you’re not an existing customer, you can still apply for an MSME loan, but you will have to first create an account with the bank/NBFC. 

Step 4: Navigate to the MSME loan section. Look for the online application form. Enter the required details. It includes your personal information, information about your business, income details, and other requirements. 

Step 5: Once you have filled in all the details, upload the supporting documentation online. Most lenders require you to provide KYC proof, proof of business ownership, ITR, profit-loss statements and business bank account details. 

Step 6: Check if you have provided all the required information. Submit the application form online. 

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Best International Travel Credit Cards in India

India is seeing several international credit cards on offer as the number of international travelers is on a steady rise. Check out the top 5 international travel credit cards in India.

Are you dreaming of international travel, but worried about the payment hassles of transacting in a foreign currency? Travel credit cards are the answer! What are travel credit cards? 

As the name implies, these credit cards are specifically designed for frequent travelers. These are reward cards that offer various travel-related perks like elite member status on airlines, hotel chains, free lounge access, air miles accumulation, and more. They are ideal for all types of travelers - leisure and business. 

Travel credit cards offer accelerated rewards earned when compared to regular credit cards. Every transaction you make using the card, helps you earn travel-related rewards. Redeem the accumulated rewards for free travel or discounts on flight and hotel bookings. Another huge perk of travel credit cards is that the foreign currency transaction fee is minimum, when compared to other regular credit cards. 

With leisure travel - domestic and international - on pause, you can use your travel credit cards to earn rewards now and redeem it on your future travels. Each traveler has a distinct set of priorities. Hence, make sure to compare the features and benefits, so that you can choose the best travel credit card that suits your needs. 

Top 5 International Travel Credit Cards in India

1. Citibank Premier miles Credit Card

Citibank provides a great option to travelers with the Premier miles credit card. This comes with complimentary offers on air travel in partnership with more than 100 airlines around the world. Users who are frequent flyers can earn airline miles. Accumulated air miles can be redeemed against future bookings. Rewards can also be redeemed for car rentals and booking a hotel stay. Here are some of the key features and benefits of this card:

Use the credit card to make transactions and continue to earn air miles which can be redeemed at bookings for nearly 100 domestic and international airlines.

Users can choose to transfer the accumulated miles to the bank’s associate airline or a partner hotel.

10,000 reward points can be availed by spending more than Rs. 1,000 within 60 days of the card issue date.

Renewal of the card can also earn up to 3000 airline miles.

10 airline miles can be earned on every Rs. 100 expense on flight bookings, hotel bookings, car rentals at www.premiermiles.co.in.

10 miles can be earned on every spending of Rs. 100 on airline bookings across the globe.

10 miles can be earned on every spending of Rs. 100 at Citibank’s associate online traders.

4 miles to be earned on every spending of Rs. 100 for all the other transactions made using this card.

The accumulated miles are valid for a lifetime. 

As part of the Frequent Flyer Program, users can book airline tickets across the globe and earn 10 miles per Rs. 100 worth of expenditure. It allows users to accumulate additional FFP miles to fly with the same airline in the future.

One frequent flyer mile can be earned on every 2 miles that you transfer to one of the following:

British Airways

Malaysian Airlines

Cathay Pacific

Qatar Airways

Delta Airlines

Thai Airways

Air India

Etihad Airways

Singapore Airlines

Eva Air.

Airport lounge access can be availed across the country.

Charges:

Interest rate is variable and could range from 37.20% to 42% p.a.

Annual Fee on this card is Rs. 3,000.

2. American Express Platinum Travel Credit Card

Known to be one of the best credit cards for international travel, the Platinum travel credit card lets you earn miles along with reward points. These points can be redeemed at any of the airlines. The card offers a range of benefits making it an ideal option for international travel. Here are some of the key features and benefits of this card:

5000 Membership points are offered on this card as a welcome gift. These can be converted into Rs.4,000 worth of Indigo Vouchers.

Upon spending Rs. 1.90 lakhs per year, you can get Rs. 7,700 worth of Indigo Vouchers.

Expenditure worth Rs. 4 lakhs per year can earn you vouchers worth Rs. 10,000 of Taj Group and Rs. 11,800 of Indigo vouchers.

Free airport lounge access across 30 lounges in metro cities like Delhi, Mumbai, Bengaluru, etc can be availed with this card.

3% cashback is offered on top fuel stations across the country.

1 reward point can be earned upon spending of Rs. 50. This excludes cash transactions, fuel spends, expenditure related to utilities and insurance.

Fees and Interest

Joining Fees on this card is Rs. 3,500.

Interest charged is 40.2% per annum.

Annual Fees on this card is Rs. 5,000.

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Business Loans vs. Overdraft? Which is the better option?

Most businesses – irrespective of their size, nature, or industry – have to borrow money at some point in their lifecycle. Be it to get off the ground, expand operations, or to weather a rough patch – borrowing is a crucial and essential part of all businesses. The variety of loan options available to business owners can be bewildering, especially if this is the first time you're borrowing outside.

One common question that most entrepreneurs and business owners ask is, "which should I choose – business loans or overdraft? Which is the better choice for me?" The answer to this question is not simple. The right product depends on your business's financials and your needs. Here, in this guide, we take a closer look at the features, pros, and cons of both these products, helping you arrive at the right choice.

What is a business loan? 

A business loan is an unsecured loan that you avail from a bank, NBFC, or other digital lenders to meet various business needs. Some instances when you can opt for business loans include:

For business expansion 

To networking capital needs

To invest in machinery, infrastructure or property for your business

For hiring additional staff

For purchasing raw material or stocking inventory 

For training employees, etc. 

Business loans can be taken for short to long-term, depending on your needs. Generally, these loans are offered for tenures ranging from one year to ten years.

How does it work? 

When you apply for a business loan, the lenders allow you to borrow a bulk amount of money. You then repay the loan amount (principal) along with interest in the form of fixed monthly EMIs. The amount that you're eligible for depends on several factors like – the borrower's profile, business vintage, years of experience, financial status, credit history, credit scores, etc.

Business loans can be classified into two broad types:

Secured loans – Here, you pledge collateral or asset, to get the loan.

Unsecured loans – These loans do not require you to submit any collateral. However, the interest rates of unsecured loans are higher compared to secured loans. 

What is an overdraft (OD)? 

There may be times when your current account runs out of funds, and you're unable to issue cheques to suppliers or pay your workers. This is where an overdraft comes in handy. To explain it in simple terms, an overdraft is an extension provided by your bank. Using this facility, you can withdraw money from your bank account (up to a specific limit), even when your account doesn't have funds.

According to recent RBI regulations, all current account holders and cash credit account holders are eligible for an OD of Rs. 50,000 per week. You can easily avail of this facility if you have a good credit score and make regular payments to your bank.

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Buy Your Favorite Apple Products Now & Pay Later Using ZestMoney - Credit Mantri

The Indian consumer market boasts of young buyers who are always on the lookout for ‘buy now pay later’ options while making any big-ticket purchases. As more and more users prefer to buy high-end variants of consumer durables, smartphones, etc., there is a growing need for smart financing solutions that allow buyers to make instant purchases without having to pay the entire value of the product upfront from their pockets. This is where smart AI-driven platforms like ZestMoney come into play.

ZestMoney is India’s leading EMI financing platform which offers ‘Buy Now Pay Later’ solution for young Indian buyers. In the latest offering to consumers, this digital platform has come up with a bonanza for Apple fans. People can purchase their favorite Apple products by using Zest Money's "Pay Later" option. ZestMoney also offers zero cost EMIs, no processing fees and instant credit approval without a card.

Demand for Apple Products during the Covid-19 Era

As the ongoing pandemic has made work from home mandatory for most individuals, there has been a sudden spike in the demand for iPads and MacBook's. Lately, Apple has also been launching many new-age products, such as Apple Watch SE, Apple Watch Series 6, iPad Air, and the iPad 8th generation. 

This has tempted a lot of new-to-credit buyers towards Apple products. The question which then arises is, how can people easily buy these high-end products without worrying about the expenditure?

The answer lies with ZestMoney, as it offers payment solutions for such customers who dream of owning an Apple product but may not have an immediate financial arrangement for buying the same. This consumer-lending fintech company’s objective is to make Apple’s premium tech products affordable for regular Indian consumers. The partnership between ZestMoney and Apple has brought a fresh ray of hope among customers who will now be able to purchase some of the best offerings from Apple by using the flexibility available with Zest Money's Pay Later option.

Zero-Cost EMI for Apple Product Enthusiasts

ZestMoney offers a credit limit to all customers who have completed digital KYC (online or physically in-store). Customers can then choose a repayment plan that suits their requirement while making the purchase. The best part of the scheme is that there is no manual intervention required for availing this service since it is entirely digital.

There are multiple “Zero-cost” EMI schemes designed by ZestMoney, in association with Apple. Customers can easily purchase newly launched Apple products, such as iPhone 12 with the help of these schemes. Customers who have limited or no credit history can also make the most of these schemes.

The Buy Now, Pay Later scheme helps customers in planning their finances well and utilize their income appropriately during challenging times. There is a significant demand seen in Tier II and III cities for Apple products. This demand grows even further as the festive season approaches.

To know more about zest money's buy now pay later scheme 

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Unsecured Personal Loans For Bad Credit

A personal loan is an unsecured loan that is quite popular among the borrowers. While the personal loans are availed for varied purposes, the eligibility criteria to get the personal loan generally remain the same. Having good credit health plays an important role in securing a personal loan quickly. What if you do not have good credit health! How can you bag a personal loan with bad credit? Though the options are limited, you can still get a personal loan with bad credit.

How to get a personal loan with bad credit?

Any credit score of 750 and above is considered a good credit score. Don’t panic if you do not have a credit score less than that. The lenders do consider lending if you have less than a credit score of 750. Following are some of the options using which you can get a personal loan with bad credit.

Approaching Banks: 

There must be banks where you have a savings account, use their credit card or had a loan account in the past, etc. You may have had a good relationship with the bank with respect to your transactional activities. Though you now have a bad credit, the lender may agree to lend to you a personal loan, considering your valuable relationship.

Approaching NBFCs:

There are several Non-Banking Financial Companies (NBFCs) that require only a credit score of 650 and above for base level approval. You may apply through such lenders wherein you have higher chances of approval on personal loans with bad credit.

Peer to Peer Lender:

These are online lenders who provide personal loans based on your income. Some of the lenders do not check your credit score and you can easily get approved on personal loans if you have good income.

Get a Guarantor:

When your credit is poor, you may onboard a guarantor in your loan application whose credit score may be well enough to get easy approval on the personal loan. However, you must remember that the credit score of the guarantor will get affected if you fail to make on-time repayments on the loan.

Joint Loan With Family Members: 

Similar to a guarantor, you can also get a personal loan by jointly applying with a family member whose credit score can be used to get approved.

If you are unable to get a personal loan through the above options, you may have to first repair your credit and begin to apply for a loan in order to prevent a rejection which can further reduce your credit score.

Debt Consolidation Loan

Debt consolidation loan is a new single loan that is taken to pay off your several existing loans. This is a very helpful option especially when you are unable to manage several loans with regard to repayments, interest rate and delinquency.

Your multiple loans such as student loan, personal loan, credit card bills etc., with different lenders can be paid off at one with this new loan. Instead of paying 5 or 6 times, you are giving out the same amount in a single payment to the new lender.

Debt consolidation loans help improve your credit health considerably after making consistent repayment. It is the best option to go for if you want to get out of debt sooner and change your bad credit history to good credit history.

You can check out for lenders who offer these loans exclusively for people with bad credit history. Though a debt consolidation loan is generally an unsecured loan, certain lenders may demand collateral if the loan amount is higher. Moreover, some lenders provide only up to a certain percentage of the overall amount required for closure of all loans. The rest has to be borne by you.

Banks and Online Lenders Offering Unsecured Loans for Bad Credit

Finding a lender who provides an unsecured loan for bad credit can be a challenging task. To make things easier, we have listed out the lenders who are willing to offer unsecured personal loans or debt consolidation loans for bad credit.

  To know more about Unsecured Personal Loans For Bad Credit

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How To Avail YES Bank EMI Moratorium?

Introduction 

In a bid to give some relief to taxpayers and homebuyers amid the Covid-19 crisis, the Reserve Bank of India (RBI) had some time back directed all banks, NBFCs and housing finance companies (HFCs) to allow three months’ moratorium on the EMI payments of various retail loans, including home loans, as well as working capital loan instalments which were due for payment between March 1, 2020, and May 31, 2020. The move was aimed at helping borrowers manage their short-term liquidity concerns.

Since the Coronavirus pandemic is still far from over, the RBI governor recently further extended the EMI moratorium by 3 months till August 31, 2020. With this extension, borrowers would now get a six-month EMI holiday for dues falling between March 1, 2020, and August 31, 2020. Various banks have announced details of the EMI moratorium on their websites. Here is a look at the details of YES Bank's moratorium on loan EMIs and credit card dues.

How to apply for an EMI moratorium at YES Bank?

Follow any one of the three methods mentioned below to opt for the EMI moratorium. 

Visit the website of YES Bank and navigate to the EMI moratorium section.

Choose the option: “I would like to opt for Moratorium” and follow the instructions on screen.

SMS: Respond to the SMS received on your registered mobile number.

E-mail: Respond to the email received from YES Bank on your registered email id. 

How to opt for a moratorium on credit cards at YES Bank?

An SMS will be sent by the Bank to Cardmembers registered mobile number with a request to ‘OPT-IN’ for the scheme. Cardholders will have to click on the link in the SMS and opt-in for the scheme. 

Participation in the moratorium scheme is entirely voluntary and it is understood that the participation by the Cardmember/s shall be deemed to have been made voluntarily.

Moratorium Benefit for Term Loans/CC/OD

Customers can avail the moratorium scheme for term loans, Cash Credit (CC) or OD facilities for the period March 01, 2020, to May 31, 2020, by requesting the Bank to opt-in for the scheme, provided the account classification with the Bank is ‘Standard’ as on March 01, 2020, and is not reported as Fraud, Red Flagged Account or Willful Defaulter by the Bank or any other Banks. 

An SMS will be sent by the Bank to your registered mobile number requesting you to ‘OPT-IN’ for the scheme. You will have to click on the link provided in the SMS and follow the instructions if you choose to opt-in, on or before April 15, 2020, unless otherwise extended by the Bank.

Instalments in Moratorium

The moratorium covers all unpaid principal and interest dues for March 2020 and all principal and interest amounts falling due in April to August 2020.

Interest During Moratorium Period

In line with RBI guidelines, the Bank will continue to charge or accrue interest during the period of moratorium. This interest accrued during the moratorium period shall need to be paid by the customer to the Bank at the end of the moratorium period. The Bank encourages the Borrower’s with adequate funds and cash flows to continue to pay the instalments to avoid additional interest and elongation of the tenor.

Overdue Loans and NPAs in Moratorium

The moratorium benefit for the principal and interest as per RBI guidelines is only eligible for dues falling between March 01, 2020, and May 31, 2020, and not for overdues outstanding as on March 01, 2020. All overdues before March 01, 2020, shall continue to attract the IRAC guidelines as applicable, without any moratorium dispensation. Hence, you are requested to clear your outstanding dues or default for the period before March 01, 2020, for which the extant IRAC and provisioning norms shall apply.

To know more about  YES Bank EMI Moratorium