Demonetisation: RBI gives borrowers 60 more days to repay car and house loans worth upto Rs 1 crore
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In view of cash crunch being faced by borrowers, the This is applicable to loans payable between November 1 and December 31, the RBI said in a notification.
"... it has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard," it said.
The above relaxation is available to entities running working capital accounts with any bank with the sanctioned limit of Rs 1 crore or less.
Term loans, whether business or personal, secured or otherwise, the original sanctioned amount of Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI) would also get benefit of this relaxation.
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This will also include
he apex bank further said that all regulated financial institutions should note that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans.
"Dues payable before November 1 and after December 31, 2016, will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs," it said.
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DHFL Chief Executive Officer Harshil Mehta said, "It is a welcome move by the RBI as many customers have expressed their inability to repay dues in time because because of ongoing demonetisation drive."
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For many of them, EMIs are due in the first half of the month, so the relaxation will help keep account standard even when the payment is not received, he said.
Neither borrowers' credit score is impacted negatively due to non-payment nor financial institutions have to make additional provisions for sub-standard account, he added.
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