In view of the outbreak of COVID-19 pandemic, RBI vide its circular no. DOR.No.BP.BC.47/21.04.048/2019-20 dated 27th March, 2020 and 23rd May, 2020 has issued instructions to mitigate the burden of debt servicing brought about by economic disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses.
In line with the RBI guidelines and to show our solidarity in standing with you, SMC Finance is offering its eligible customers moratorium facility.
In this current situation there may be interruption in your business which might result into low cash flows or earnings. We understand this and by implementing this relief package we aim to ensure that you continue to take utmost care of yourself and family, your business and your own self.
We recommend that you take the moratorium only if it really helps you otherwise in a longer scheme of things you will end up paying higher interest for the same loan amount.
A borrower is eligible for the relief package if all of the following conditions are meet.
You have to apply for moratorium/deferment of interest by writing to us on email@example.com with your LAN no. from your registered e-mail address. Alternatively you can also apply online by clicking the link below and follow few simple steps
In view of the RBI notification, SMC Finance is offering moratorium on the repayment of instalments for Term Loans and deferment of interest for Working Capital Facilities for the period from 01st March 2020 to 31st Aug 2020.
The moratorium is being offered on all the loan types by SMC Finance viz. SME-Secured Loans (LAP), SME-Secured Loans (Equipment), SME-Unsecured Loans (WCTL), Corporate Loans (including loans for on-lending to NBFC), Personal Loans, Consumer Durable Loans and Working Capital Facilities. The package is not applicable to Loan Against Securities facility.
Moratorium on instalment / deferment of interest means temporary postponement of repayments due between 1st March 2020 & 31st Aug 2020. The loan facility will continue to accrue interest which shall be payable after 31st Aug 2020 as per the terms of the package.
No. The moratorium package is not a waiver of instalment / interest. The loan facility will continue to accrue interest which shall be payable after 31st Aug 2020 as per the terms of the package. The borrower will have to pay the instalment/interest post moratorium/deferment period.
These terms refer to the relief package. "Moratorium" is used with respect to Term Loans and "deferment of interest" is used with respect to Working Capital Facility in this FAQ.
If you are ineligible or do not wish to avail the moratorium on your existing loan from SMC Finance, you will have to pay the due instalment amount as per the existing schedule of repayment in normal course of business.
No action is required from your end. Your repayment will continue as scheduled. SMC Finance will present the cheque/NACH for repayment in normal course. Please maintain adequate balance in your accounts.
It is optional. We advise you to avail the same only if it is really necessary as it is not a waiver. You have to pay interest for the moratorium period on amount outstanding which will increase your future EMI / instalments / repayments post the moratorium period is over.
Following actions will be taken on the term loan if you have opted for the moratorium package.
In case your repayment is through Post Dated Cheques (PDC) then
Following actions will be taken on the working capital facility if opted under for deferment of interest.
Yes, you can make payments after availing the moratorium/deferment of interest package during the period of the moratorium/deferment. By doing so, you will be able to reduce your additional interest burden in the future.
Yes, you are eligible for moratorium/deferment of interest for the remaining moratorium/deferment period.
For Eligible Borrowers availing Working Capital Facility, they have an option to convert their accumulated interest for the moratorium period availed by them into a term loan. The FITL is required to be paid on or before March 2021.
The Eligible Borrower availing Working Capital Facility may request in writing for converting their accumulated interest into Funded Interest Term Loan payable on or before March 2021. Upon the receipt of request,
the Company will examine the request and may approve or reject the request for grant of FITL.
The request for FITL can be made by writing to us on firstname.lastname@example.org with your LAN no. from your registered e-mail address.
Please note that Company is not obligated to grant FITL to each and every Eligible Borrower from whom the request is received. The discretion to grant FITL solely rests with the Company and shall be binding upon the Eligible Borrower.
No, it cannot be availed for Term Loan. Only Eligible Borrowers availing the Working Capital Facility are eligible for availing the Funder Interest Term Loan.
It is not necessary that if one bank/NBFC has granted a moratorium/deferment, you will be eligible for the same in another Bank/NBFC. Each Bank/NBFC has defined their criteria for customers to be eligible for the scheme.
If case you are eligible availed moratorium/deferment of interest on your loan facility,
SMC Finance will not report "default" to credit bureaus for the moratorium/deferment of interest period.
Therefore, your credit score will remain unaffected.
However, any default in repayment of instalment/interest prior to moratorium/deferment period can be reported to credit bureaus. Therefore, you are requested to make payment of your overdue prior moratorium/deferment period to prevent any reporting to credit bureaus.
No late payment charges/ default interest/ additional interest shall be levied during the moratorium/deferment of interest period.