Demonetisation: Borrowers get additional 90 days to repay loans
In view of cash crunch being faced by borrowers, the RBI on Wednesday provided additional 90 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.
New Delhi: In view of cash crunch being faced by borrowers, the RBI on Wednesday provided additional 90 days for repayment of housing, car, farm and other loans worth up to Rs 1 crore.
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 90 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.
This will also include housing loans and agriculture loans, the statement said.
The 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.