RBI’S Moratorium to hurt Corporate Borrowers
For corporate customers whose working capital cycle has been impacted, the interest will get bunched up after 3 months. They have to repay this by end of June.RBI allows banks to give 3 months delays to borrowers that may stand to hurt corporate customers who have taken working capital loans.
Corporate customers who had availed of these loans will have to pay the 4-month interest by the end of June, failing which they will be classified as SMA 1 or Special Mention Account. SMA 1 are those accounts where repayments have been overdue for between 31 and 60 days. In the worst case if these borrowers are unable to pay immediately, then they can pay before 90 days end to avoid the tag of a non-performing account (NPA).
All the customers who are looking for settlement on their non-performing accounts can now pay back by 30 June. SBI currently runs three schemes for NPA settlement including SBI One Time Settlement (OTS) 2019 (loan amount of Rs20 lakh -Rs50 crore), Rin Samadhan 2019-2020 (loans up to Rs20 lakh), and general compromise (loans above Rs50 crore).
Read Other Related News