POLICY ON MORATORIUM
The COVID 19 Coronavirus outbreak has severely impacted life around the world. As a precautionary measure, India also imposed a three-week nationwide lockdown beginning 25th March, 2020. The economy is expected to be impacted and slowdown in the coming months. Cash flows for all earning class is going to be impacted which will affect the near term capacity to repay loans.
To address this issue, the Reserve Bank of India (RBI) announced several measures necessary to revive growth and ensure liquidity in the market. It also permitted commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies and micro-finance institutions) (“lending institutions”) to allow a moratorium on payment of instalments in respect of all term loans falling due between March 1, 2020 and May 31, 2020. A Notification No. RBI/2019-20/186 DOR.No.BP.BC.47/21.04.048/2019-20 “COVID REGULATORY PACKAGE” Dated March 27,2020 was issued by RBI in this regard.
The abovementioned notification of RBI prescribes that a Board approved policy for providing the abovementioned relief will be disclosed in public domain. In accordance with the same, the Board approved policy of IFFCO Kisan Finance Limited (Formerly known as Kisan Rural Finance Limited) is placed herewith for the information of its customers.
- All instalments falling due within the months of March, April and May 2020 will be eligible for moratorium benefit and their repayment tenure will be extended.
- Instalments which were already overdue before March, 2020 will not be eligible for moratorium.
- Customers who have already paid their instalments due for March, 2020 can choose to avail the moratorium for April, 2020 and May, 2020 instalments.
- The company will take a call on cases where customers choose to apply for moratorium based on facts and circumstances of each case.
- Customers will have to submit consent for availing the moratorium and accept the terms and conditions thereof.
- The offer of moratorium by the company and its acceptance by the customer may be made through physical document/SMS/Email or any other digital mode, as decided by the Company.
- For cases where moratorium has been granted, the tenor of the loan will be suitably extended and/or the repayment schedule suitably restructured with the consent of the borrower.
- Normal interest, as per terms of the agreement, will continue to accrue on the outstanding principal amount during the moratorium period.
- There will be no deterioration in the classification of loan accounts of borrowers who avail the moratorium period.
- In case the borrowers choose to prepay the instalments even after moratorium has been granted to them, no pre-payment premium shall be charged by the company.
THE DECISION TO GRANT A MORATORIUM WILL BE AT THE SOLE DISCRETION OF IFFCO KISAN FINANCE LIMITED AS PER POLICY APPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY