CreditAccess Grameen to roll out loan moratorium scheme for borrowers
CAGL has framed its loan moratorium policy, approved by the Board of Directors, it said in a release.
Last month, the Reserve Bank issued guidelines on loan moratorium to banks and financial institutions as loan capacities of borrowers have been crippled due to the lockdown imposed to contain the spread of coronavirus.
CAGL said the company's moratorium will be applicable to all the existing borrowers across India.
It will provide moratorium on all instalments falling due between March 1, 2020 and May 31, 2020. For the borrowers who have already paid instalments after March 1, 2020, required adjustments will be made so that moratorium is applicable for the remaining instalments till May 31, 2020, the company said.
The asset classification will be according to RBI guidelines. The customer will not be reported as defaulter during the moratorium period. The regular reporting to credit bureaus shall commence after the repayment holiday period, it said further.
"The impact of COVID 19 has had a minimal impact on our business as we operate more in the rural areas and not in urban centers. However, we invoked our Business Continuity Plan and complied with government advisories keeping in mind the safety of our employees and customers," CAGL Managing Director and CEO Udaya Kumar Hebbar said.
The RBI's move to allow banks, NBFCs and MFIs to extend a moratorium on term loans for 3 months is a very supportive move towards fighting the crisis, he said adding the lender aims to extend its continued support towards customers and the society.
On its Business Continuity Plan, it said business was as usual until March 20, 2020, however CAGL took immediate steps after March 23 for customer and employee safety and complied with government advisories.
It also added that as on date, there has not been any significant impact on the rural economy, especially in the regions where the company operates.
The immediate fallout of lockdown has been more severe in urban locations, especially on the migrant population. Reverse migration might create some difficulties with concerned families for a temporary period, said the Bengaluru-headquartered micro lender.
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