The State Bank of India (SBI) has announced a 12-month moratorium on interest payments for loans taken by its customers in Manipur, where thousands of people were displaced, and over 150 people were killed in an ongoing ethnic strife that rocked the state for over three months. Recognising the challenges individuals and businesses are facing, SBI has launched a comprehensive moratorium to provide assistance during these trying times, PTI reported.
SBI's Relief Package: A Lifeline for Manipur's Borrowers
The relief includes a moratorium of up to 12 months on equated monthly instalments (EMIs), interest payments, and other instalment obligations. A “moratorium on loan” is a temporary break the bank gives its customers on interest payments. During this specific period of 12 months, borrowers don't have to pay their monthly loan installments. So customer can start repaying the interest amount after the moratorium ends.
To qualify for the moratorium, borrowers' accounts must not have been classified as non-performing assets (NPAs) as of May 3, 2023, as stated by a notice from SBI's Manipur regional office. The relief package will be implemented based on the May 4, 2023, assessment date.
SBI’s relief package is designed to alleviate the financial burden on borrowers affected by the unrest. The package encompasses a significant range of benefits, offering much-needed breathing space to borrowers in Manipur.
"The SBI's relief package is a welcome move for borrowers in Manipur who have been affected by the unrest. The moratorium on EMIs and interest payments will provide them with much-needed breathing space and help them manage their finances as normal life and economic activities have taken a setback," PTI quoted an SBI official as saying.
Deadline For Availing of the Moratorium
Borrowers seeking to take advantage of SBI's relief package should approach their home branches or any nearby SBI branch before August 31, 2023.
The moratorium on EMIs and interest payments offers a critical lifeline, allowing borrowers from Manipur to regain their financial stability. At the same time, they navigate through the disruptions caused by the prevailing situation.
More than 160 people have been killed and several hundred injured since ethnic violence broke out in the state on May 3 when a 'Tribal Solidarity March' was organised in the hill districts to protest against the majority Meitei community's demand for Scheduled Tribe status.
