RBI Gives Relief to the Loan Borrowers
Apr 18, 2017 Home Loan
Amid the cash crunch due to demonetization, RBI provided relief to the loan borrowers by providing additional 60 days of loan repayment. This is only applicable for the loans payable between November 1 and December 31.
RBI released the statement saying, ‘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’.
The above mentioned is valid for the loan sanctioned up to the limit of Rs 1 crore. Any loan whether personal or business secured or otherwise, under the record of any bank or NBFC would get this relaxation. This also includes business and agricultural loans.
Apex bank further said that all the financial institutions and banks should note that this is short term and does not result in restricting of the loan. Dues that were due before November 1 and after December 31 will not face any relaxation.
Demonetization has hit daily life and loan repayment as well. As people are now only allowed to withdraw Rs 24,000 per week, it has made it difficult for the loan borrowers to repay the loan.
Real estate developers have welcomed this move by RBI with the understanding that the buyers might be facing troubles paying off their loans. For a lot of them, loan repayment are expected in the first half of the month, delays in repayment are expected.
The good part is that, the credit score of the borrowers will not be affected negatively due to delay in repayment. The additional provision has been a great relief to the loan borrowers in the different sectors.
Not only is real estate, this relief for every loan sector including home loan, car loan, student loans etc.
RBI released the statement saying, ‘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’.
The above mentioned is valid for the loan sanctioned up to the limit of Rs 1 crore. Any loan whether personal or business secured or otherwise, under the record of any bank or NBFC would get this relaxation. This also includes business and agricultural loans.
Apex bank further said that all the financial institutions and banks should note that this is short term and does not result in restricting of the loan. Dues that were due before November 1 and after December 31 will not face any relaxation.
Demonetization has hit daily life and loan repayment as well. As people are now only allowed to withdraw Rs 24,000 per week, it has made it difficult for the loan borrowers to repay the loan.
Real estate developers have welcomed this move by RBI with the understanding that the buyers might be facing troubles paying off their loans. For a lot of them, loan repayment are expected in the first half of the month, delays in repayment are expected.
The good part is that, the credit score of the borrowers will not be affected negatively due to delay in repayment. The additional provision has been a great relief to the loan borrowers in the different sectors.
Not only is real estate, this relief for every loan sector including home loan, car loan, student loans etc.
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