In view of cash crunch being faced by borrowers, the RBI on Monday provided additional 60 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 60 days beyond what is applicable for the concerned regulated entity for recognition of a loan account as substandard," it said. Neither borrowers' credit score is impacted negatively due to non-payment nor financial institutions have to make additional provisions for sub-standard account, he added. Loans sanctioned by banks to NBFC (MFI), NBFCs, Housing Finance Companies, and by State Cooperative Banks to DCCBs, it said, adding, the above guidelines will also be applicable to loans extended by District Cooperative Banks.

Source: dna November 21, 2016 11:53 UTC