123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Loan Restructuring Support For Msmes- A Positive Step - Npa Consultant

Profile Picture
By Author: NPA Consultant
Total Articles: 40
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

It is a revolutionary step by RBI to allow MSMEs to restructure their existing loans that have defaulted but not fall in the NPA category as on 1st January 2019.

Since MSME is more vulnerable to disruptive changes after the Covid-19 outbreak, this step will provide great help to them. It is being appreciated by not only the sector but across all businesses. Looking at the situation of npa in india, this step will support the economy.

The key elements of this guideline about loan restructuring are:

The most notable feature is that the loan account that wants restructuring should not be declared as Non-Performing Asset. Thus, it will not add to the already overburdened NPA situation in the country.
The third criterion says that the eligible borrower has to be classified as standard on 1st January 2019. It will exclude companies that were affected by demonetization or GST implementation. Experts feel that a lot of ties has elapsed since these two events happened, the majority of the potentially viable enterprises are not eligible to be cored as per this condition.
Repairs and maintenance


...
... Since the policy does not entertain businesses that are already NPA, there is no adverse impact on the npa recovry process. Similarly, there is no adverse impact on the economy as well.

The move will not add any the burden on nclt lawyers Mumbai and the tribunal as it considers only non-NPA cases. This exercise will revive stressed businesses. It is a policy support for loan restructuring, which is a good thing for sure.

This move is quite good for the MSME sector. Now, the government runs an awareness program for banks and other lenders so that they make restructuring a part of lending program for MSME. Thus, it will come into the mainstream.

The severely impacted MSME sector will have some relief by this step at least.

https://www.npaconsultant.in/blog/blog-details/loan-restructuring-support-for-msmes-a-positive-step

Total Views: 215Word Count: 303See All articles From Author

Add Comment

Business Articles

1. Connect Your Clients In A Better Way With Digital Business Cards
Author: Angus Carruthers

2. Design Interiors Elevates Kitchen Living In Brighton With Bespoke, Functional Designs
Author: Kitchen Brighton

3. Make Your Small Business Run Smoothly With Telephone Answering Services
Author: Eliza Garran

4. Finding The Best Business Broadband Providers With These Tips
Author: Julian Serle

5. 3 Major Benefits Of Partnering With A Hosted Voip Service Provider
Author: Julian Serle

6. Understanding E-commerce Content Compliance: A Seller’s Guide
Author: Actowiz Metrics

7. Lucintel Forecasts The Cloud Orchestration Market In Germany To Reach $59 Billion By 2031
Author: Lucintel LLC

8. Lucintel Forecasts The Circuit Breaker Tester Market In United States To Reach $2 Billion By 2031
Author: Lucintel LLC

9. Leed, Estidama & Beyond: What A Green Building Consultant In Dubai Can Do For You
Author: GREEN BUILDING

10. Lucintel Forecasts The Circuit Breaker Tester Market In Japan To Reach $2 Billion By 2031
Author: Lucintel LLC

11. Mwhat To Look For In An Expense Management Software
Author: TrackHr App

12. Industrial Cleaning Contractors Limited Delivers Expert Industrial Painting And Dilapidations Services Across The Uk
Author: Expert Support

13. Lucintel Forecasts The Circuit Breaker Tester Market In Germany To Reach $2 Billion By 2031
Author: Lucintel LLC

14. How Proposal Writing Company Can Be Contributing In The Growth Of Your Business
Author: Mark Twain

15. Professional Proposal Writing Services And Succeed In Business, Here Is How!
Author: Mark Twain

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: