Bengaluru, Dec 3 : Public lender Syndicate Bank has extended the restructuring of the loan to MSMEs. This will provide MSMEs a flexible repayment option and prevent their accounts from being classified as Non-Performing Assets (NPAs).
Restructuring of loan is a facility given to the customers to reschedule the repayment structure of their loan accounts. The provision is given to those customers whose units are under stress due to various internal or external reasons, thereby helping them to stabilize their business over time, according to a release here on Tuesday.
Syndicate Bank MD and CEO Mrutyunjay Mahapatra said that “MSME contribute significantly to country's economy’ growth. We understand they are facing some difficult times these days due to various unforeseen reasons. As a segment, MSME has always been a focus for Syndicate Bank as they add prominently to the diversified portfolio of the bank. With this loan restructuring facility, we are hoping to provide them the needed support that will enable them to prosper and grow better.”
Restructuring will provide customers facilities like rescheduling the repayment by providing them longer repayment periods; giving repayment holidays to reduce the loan repayment obligation for their stressed business; providing them additional finance to tide over the situation; converting the working capital loan into term loans; converting the overdue interest portion in working capital alone into term loan so as to offer a staggered repayment, etc., he added.
MSMEs which is GST-registered (except for ones exempted from it) with aggregate debt of Rs 25 Crore or below as on January 1, 2019 are eligible to apply for this facility, the release added. (UNI)