RBI eases loan repayment norms, grants additional 30 days

The Reserve Bank of India (RBI) has further relaxed the norms for bad loan classification for small borrowers.

The latter now get an additional 30 days to repay, over and above the 60 days extended repayment period announced last month. This relief applies to dues payable between November 1 and December 31, in a concession to the effect of demonetisatin.

Eligible for the additional time are working capital accounts and crop loans, beside term loans for business purposes. In all cases, the maximum limit of loan sanctioned must have been less than Rs 1 crore.

Normally, loans unpaid for 90 days are treated as non-performing assets. The first category in this is termed substandard asset, and the relaxation is on this.