personal finance

ICICI Bank extends moratorium on credit card dues: Here's how it will work


The Reserve Bank of India extended the moratorium on loan equated monthly instalments (EMIs) by three months, i.e., till August 31, 2020. Many banks have announced the details of their extended moratoriums on term loan EMIs and credit card dues.

ICICI Bank has announced that it has extended the moratorium on its loans and credit card dues.

Read on to find out how the extension of the moratorium will work for ICICI Bank credit card holders. (All the details are from the bank’s website.)

When do I need to make the payment after the moratorium period is over?
The customer needs to pay as per their credit card statement generated after end of moratorium and its billing cycle payment due date. For eg. If the customer has opted for moratorium in June 2020, payment needs to be made for the July 2020 month statement that gets generated.

The amount mentioned in your statement would include:
I. All previous outstanding against which payment is not done
II. Principal amount on transactions done during moratorium period and interest
levied on these transactions
III. Interest on Personal Loan on Credit Card (PLCC) and EMI transactions

If I avail of the moratorium facility, how will my EMIs be recovered after the period is over for Credit Card transactions? Is it single debit of all the EMIs put together or will my EMIs be debited monthly as usual?
As EMIs are billed in your regular Credit Card statement cycle, EMIs would continue to be billed in your statement as per the original amortisation schedule. For example, if your EMI was to be billed on June 15, and you have availed of the moratorium benefit on June 05, the EMIs would still be billed on June 15. The payment for these billed transactions will need to be done as per the payment due date of the statement generated after end of moratorium to avoid any penal late payment.

In case of non-payment of statement dues (which includes EMIs billed) by the respective payment due dates, interest charges will accrue at the standard interest rates (as per standard interest rate of the Credit Card variant as mentioned in the applicable terms and conditions).

I have opted in for availing the moratorium. I have set an auto debit on my Credit Card for payment. Will the auto debit facility be triggered during moratorium period?
Auto debit will not be triggered during the moratorium period if you have opted in for moratorium. Auto debit facility would be restored from the preceding month in which moratorium has ended at pre-moratorium configuration.

I have multiple Credit Cards of ICICI Bank. Can I opt for moratorium on only one of my cards?
Yes, moratorium will be applied to the card number which the customer chooses during the opting in/ selection process. Incase the customer needs moratorium on multiple cards, he/she needs to raise separate requests for each card.

Can I apply for moratorium of multiple months at a time?
No, your request for moratorium will be valid for a single month only. Incase you want to extend the moratorium period; you will need to reapply for moratorium in the subsequent month.

For Eg. If you have applied for the moratorium at the beginning of June 2020, you will be in moratorium for the month of June 2020 and statement generated in July month will be payable. Incase you want to avail moratorium for July month as well, you will have to reapply at the beginning of July for the same.

Illustration: Credit card dues

Last Statement Date Moratorium confirmation Date Moratorium Period End Date
March 20th, 2020 1 st April, 2020 May 31th , 2020

Important dates Significance Outstanding Remarks
March 10th , 2020 First Transaction 10,000 Earlier outstanding of customer was 0.
March 20th , 2020 Statement Date 10,000 Payment Due Date (PDD) : 7th April, 2020
April 1st, 2020 Moratorium Period confirmation date 10,000 Total Outstanding of Rs. 10,000 will be put under moratorium
April 7th , 2020 Payment due date of last statement 10,000 If payment of Rs. 10,000 (last statement outstanding) is not done: a. Interest will start to accrue at contracted interest rate on Rs. 10,000 from Apr 20th 2020 b. Customer will not be levied any penal charges during Moratorium Period
April 15th, 2020 New Transaction 5000 Customer has done a new transaction of Rs. 5000
April 20th , 2020 Statement Date Total Outstanding: 15,510 Principal: Rs. 15,000 Interest: Rs. 510* Statement will be generated in the Moratorium Period but balance need not be paid. If payment has not been done: a. Interest will be billed on Rs. 10,000 at contracted interest rate from 10th March 2020 i.e. (Rs. 476) b. Interest will be billed on incremental spends of Rs. 5000 at contracted rate from purchase date of Apr 15th, 2020 i.e. (Rs. 34)
May 7th , 2020 Payment due date of last statement 15,510 If payment of Rs.15,510 (last statement outstanding) is not done: c. Interest will start to accrue at contracted interest rate on Rs. 15,510 from Apr 20th 2020 d. Customer will not be levied any penal charges during Moratorium Period
May 20th, 2020 Statement Date Rs. 16,038 Old Principal: Rs. 15,510 New Interest: Rs. 528* Statement will be generated in the Moratorium Period but balance need not be paid. If payment has not been done: a. Interest will be billed on total outstanding of Rs 15,510 at contracted rate from Apr 21st, 2020 i.e. (Rs. 528)
Jun 7th , 2020 Payment due date of last statement 16,038 If payment of Rs.16,038 (last statement outstanding) is not done: a. Interest will start to accrue at contracted interest rate on Rs. 16,038 from May 20th 2020 b. Customer will not be levied any penal charges during Moratorium Period
Jun 20th, 2020 Moratorium Period Statement Date Rs. 16,602 Old Principal: Rs. 16,038 New Interest: Rs. 564* Statement will be generated on Jun 20th , 2020 with Principal & Interest billed for the Moratorium Period. If payment has not been done:
a. Interest will be billed on total
outstanding of Rs 16,038 at contracted
rate from May 21st, 2020 i.e. (Rs. 564)
Total Amount Due/ Minimum Amount due
Payment needs to be done by 8th
Jul 2020
to avoid penal late payment charges

Illustration: Credit card EMIs

Original Transaction Amount EMI Start Date / First installment date EMI Tenure Interest Rate Statement Date
Rs 60,000 Feb 10th, 2020 6 months 16% 20th of Every Month

Important dates Significance Outstanding Remarks
Feb 10th, 2020 1st EMI Installment Billed Rs.10472 Total billed amount of Rs 10472 is inclusive of Principal and Interest
Feb 20th , 2020 Statement Date Rs.0 Customer has already paid the overall installment of Rs. 10472 on 18th Feb 2020
Mar 10th , 2020 2nd EMI Installment Billed Rs.10472 Total billed amount of Rs 10472 is inclusive of Principal and Interest
Mar 20th , 2020 Statement Date Rs.10472 Payment due date: 7th Apr 2020
Apr 1st, 2020 Moratorium Activation date Rs. 10472 The installment billed on Mar 20th 2020 will be put under moratorium
Apr 7th, 2020 Payment Due date Rs. 10472 If payment of Rs. 10,472 (last statement outstanding) is not done, a. Interest will start to accrue at contracted interest rate on Rs. 10,472 from 10th March 2020 b. Customer will not be levied any penal charges during Moratorium Period
Apr 10th , 2020 3 rd EMI Installment Billed Rs. 20,944 Total Outstanding is addition of last statement balance & 3 rd EMI installment, in case no payment received by the customer
Apr 20th, 2020 Moratorium Period Statement Date Rs. 21,573 EMI Balances: Rs. 20,944 Interest: Rs. 629 Statement will be generated in the Moratorium Period but balance need not be paid. Incase of no payment done by the customer: a. Interest will be billed on Rs. 10,472 at contracted interest rate from 10th March 2020 i.e. (Rs. 498) b. Interest will be billed on Rs. 10,472 at contracted interest rate from 10th Apr 2020 i.e. (Rs. 131)
May 10th , 2020 4 th EMI installment billed Rs. 32,045 Total Outstanding is addition of last statement balance & 4 th EMI installment, in case no payment received by the customer
May 20th, 2020 Moratorium Period Statement Date Rs. 32,910 Principal: Rs. 32,045 Interest: Rs 855 Statement will be generated in the Moratorium Period but balance need not be paid. Incase of no payment done by the customer: a. Interest will be billed on Rs 21,573 at contracted rate from Apr 21st, 2020 i.e. (Rs. 734) b. Interest will be billed on new EMI billed of Rs 10,353 at contracted rate from May 10th, 2020 i.e. (Rs. 131)
Jun 10th, 2020 5 th EMI installment billed Rs.43,382 Total Outstanding is addition of last statement balance & 5 th EMI installment, in case no payment received by the customer
Jun 20th, 2020 Moratorium End Statement Rs. 44,670 Principal: Rs. 43,382 Interest: Rs. 1288 Statement will be generated after the end of the Moratorium Period but balance needs to be paid by Jul 8 th 2020 Incase of no payment done by the customer till date: a. Interest will be billed on Rs 32,910 at contracted rate from May 21st, 2020 i.e. (Rs. 1157) b. Interest will be billed on new EMI billed of Rs 10,353 at contracted rate from May 10th, 2020 i.e. (Rs. 131)

  • Kindly note the interest amount charged can vary and will be dependent on the transaction dates, payment dates and contracted interest rates.
  • Kindly note in case on non-payment of statement dues (which includes EMI’s billed) by the respective payment due dates, interest charges will be accrued at the standard interest rates (APR of the card variant as per Credit Cards Most Important Terms & Conditions)) and will be levied at every statement generation in Moratorium Period which will need to be paid after the end of moratorium.

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