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RBI COVID-19 Regulatory Reliefs Package

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 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.

  • Am I eligible for moratorium/deferment of interest on the loans being availed by me?

    A borrower is eligible for the relief package if all of the following conditions are meet.

    1. All loan facilities is live and is with outstanding as on 31st March 2020
    2. The loan facility repayment due (EMI / principal / interest) should fall within the specified period i.e. 1st March 2020 till 31st May 2020.
    3. The loan repayment should still be unpaid to the Company.
    4. The Borrower agrees to the terms and conditions that would govern the moratorium
    5. The Borrower must show the willingness to repay the loan after the moratorium
    6. As on 1st March 2020, the loan facilities is not more than 180 days overdue
    7. The Borrower has not been identified / classified as fraud
    8. The loan facilities has not been recalled by the Lender
    9. The loan facilities against whom legal action has been initiated and are at following stage are not eligible for moratorium/deferment of interest
      1. Cheque/NACH/ACH Bounces cases- Warrant (Bailable or Non-Bailable Warrant) issued by court
      2. Initiation of Arbitration or proceeding before NCLT
    10. The loan facility is not settled / foreclosed by the Borrower(s). (In such case, the payment (either in part or full) as per the settlement / foreclosure is to be made during the specified period.)

  • How can I apply for the moratorium/deferment of interest if I am eligible?

    You have to apply for moratorium/deferment of interest by writing to us on 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

Please note that no verbal request for moratorium shall be accepted.

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 May 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 May 2020. The loan facility will continue to accrue interest which shall be payable after 31st May 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 May 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.

Please note that being eligible for moratorium/deferment of interest does not automatically allow you to avail the benefit.

If you are ineligible or do not apply for 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.

  • The tenor of the loan will be extended by 3 months
  • Interest will be computed on monthly compounded basis at the prevailing interest rate for the loan for the moratorium period.
  • The above interest will be added to the principal outstanding.
  • Based on the above, new EMI will be calculated which will be payable starting June 2020 on your regular due date for the month.
  • Please refer to illustrations below for help: Customer availed a loan Rs. 20 lacs with ROI - 18% for tenor of 36 months with EMI of Rs. 72,305/-.

    The first EMI date was 04th Feb 2020 and last EMI date is 04th Jan 2023. If the Customer opt for moratorium (i.e. March 2020-May 2020), the tenor will extend 3 months. The last EMI date now will be 4th April 2023 and new EMI payable from June 2020 shall be Rs. 75,608/-. The new EMI includes the interest for moratorium period.

  • In case your repayment is through Post Dated Cheques (PDC) then

  • a. provide new PDC for the revise EMI / repayment amount or
  • b. provide new NACH mandate

  • Following actions will be taken on the working capital facility if opted under for deferment of interest.

  • Interest will be computed on monthly compounded basis at the prevailing interest rate for the facility for the deferment period.
  • The above accrued interest will be payable along with the interest payable for the month of June 2020.

  • Yes, you may 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 period of April 2020 and May 2020

    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 and applied for availing 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 may 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.


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