Covid-19 relief: SBI relaxes payment timeline for one time settlement

The bank said it would not charge any interest on the amount for this extended period

State Bank of India (SBI) has extended the timeline for payment of settlement amount under its one-time settlement scheme by three months. Now, customers on board the scheme, SBI OTS 2019 / Rin Samadhan 19-20 / General compromise, can meet payment obligation by June 30, 2020.  

Under One Time Settlement (OTS) 2019, the extension will be available if the first two instalments of 5 per cent/15 per cent, and 20 per cent/25 per cent have been received within stipulated time of 30 days and 60 days respectively. The balance OTS amount can be paid by June 30, 2020. Bank will not charge any interest on the amount for this extended period.    

Similarly, under Rin Samadhan, the timeline for receipt of acceptance of the OTS proposal along with upfront payment from borrowers has been extended up to June 30, 2020, from the current March 31, 2020, and up to September 30, 2020, for recovery of entire OTS amount. This will provide an extended opportunity to borrowers who are unable to visit branches owing to the lockdown.

Payment obligations for borrowers with outstanding as on March 01, 2020, under General Compromise category, has been extended by 3 months from the respective dates, without charging any interest for an additional period.

Earlier, SBI warned borrowers that deferment of equated monthly instalments (EMIs) offered under the RBI's relief package on account of Covid-19 could put an additional cost on them. The lender also advised borrowers to repay their loans if they are in a position to do the same.
 

SBI said on its website that deferring the EMIs for a home loan of Rs 30 lakhs with a remaining maturity of 15 years, the net additional interest would be approximately Rs 2.34 lakhs, which is equal to eight EMIs. In other words, if customers defers three EMIs then they will end up paying 8 EMIs more.