The year 2020 onwards has seen the world adapt to the challenges presented by the outbreak of COVID-19. Governments across the world have imposed lockdowns and other combative measures to contain the virus and this has had a serious impact on economies and individual finances. To provide some financial relief, governments and financial institutions are extending relief schemes and packages to citizens. The Gold Loan Moratorium is one such offering
What is a Moratorium?
Before you get into the details of a Gold Loan Moratorium, it is important to understand the basic concept of a moratorium. A moratorium is an authorised delay or prohibition of an activity in response to a crisis. For instance, natural disasters like earthquakes, floods, droughts, etc., disrupt daily lives. To combat negative financial consequences of these situations, the government can apply a moratorium.
Moratoriums can help the economy recover and provide people with some financial relief. In terms of a loan, a moratorium period is the time during which the borrower is not expected to make any repayments in relation to the loan. It is only once the impact of the crisis is reduced or becomes manageable that the moratorium is lifted and the repayment schedule is resumed.
Education Loans often provide this feature even when there is no natural disaster or calamity. Students who avail an Education Loan are allowed to commence repaying it after getting a job, or a year after completing their studies. The period during which they are not expected to make payments is the moratorium period.
What is a Gold Loan Moratorium?
The COVID-19 outbreak has led to large scale unemployment and people are struggling to access basic necessities. In such a scenario, it is challenging for individuals to repay their loan instalments. In 2020, the Reserve Bank of India had instructed all the lending institutions in the country to offer a 3-month moratorium on term loan repayments falling between 1st March 2020 and 31st May 2020.
Gold loans too are part of the RBI’s Covid-19 regulatory package. Thus, if you have availed of a Gold Loan and are having difficulty repaying any of the instalments that are due during the period mentioned above, you can apply for a moratorium on gold loan.
However, it is important to remember that a moratorium is not a waiver. It does not allow you to waive off paying the loan instalments, it only defers them to a later date. The interest continues to accrue during the moratorium period and gets added to the outstanding principal.
HDFC Bank Gold Loan Moratorium
HDFC Bank has always understood the value of gold. Keeping the inherent financial value of such an asset in mind, HDFC Bank has designed Gold Loans that allow you to procure funds against gold articles. With HDFC Bank Gold Loans, you can get funds starting from Rs. 25,000 with a quick disbursal time of 45 minutes. The tenure of the loan is from 3- 24 months and we also provide various repayment options to suit your requirements.
HDFC Bank also realises the difficulties caused due to the pandemic. We wish to reduce the financial strain placed on you during these uncertain times and offer some relief. You can avail of the 3-month moratorium on our Gold Loans so that you are able to make repayments comfortably.
Find out how to apply for our Gold Loan moratorium and eligibility criteria for the same by clicking right here.
Wondering if HDFC Bank Gold Loan is the best option for you? Click here to read more on the Gold Loan benefits to find out why!
*Terms and conditions apply. Gold Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.