IRDAI issues instructions for rescheduling of payment towards term loans

The Insurance Regulatory and Development Authority of India on 7th July 2020 has permitted insurers to grant a moratorium of three months towards payment of installments falling due between 1st June 2020 and 31st August 2020.

The interest will, however, continue to accrue on the outstanding portion of the term loans during the period and the rescheduling of payments, including interest, will not qualify as a default for reporting of non- performing assets (NPAs).

Further, IRDAI has directed the insurers to frame Board approved policy for extending relief to all eligible borrowers taking into account various factors, including remaining tenure of the loan, consortium, or non-consortium lending and repayment capacity.

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