The re payments currently gotten may possibly not be considered for the intended purpose of passing the moratorium leisure. Lenders have actually their discretion, but accordingly, these re re re payments may be either viewed as re re payment of major as on first March, 2020, duly reduced for the time lag between first March and also the real repayment date, or the re payment currently created by the debtor that are excluded through the moratorium. For instance, in the event that re re payments fell due on 7th March, and also by fifteenth March, 80percent of this re re payments have now been made, exactly the same might be excluded through the vacation, thus giving getaway just for the payments due on fifteenth April and fifteenth May.
The moratorium period will not be considered for computing default and hence, it will not result in asset classification downgrade in case of standard loan. Our views in this respect have now been talked about elaborately above.
According to the FAQs granted by the MoF, its clear that the advantage of moratorium can be obtained to all the accounts that are such that are standard assets as on first March 2020. Ergo, loans already categorized as NPA shall carry on with further asset classification deterioration throughout the moratorium duration in case there is non re re payment.
In case there is assets showing indications of stress as on March 1, 2020, the moratorium may be extended because they are categorized as standard asset. Further, the asset category of account which was categorized as SMA must not be classified as further a NPA just in case the installment is certainly not compensated through the moratorium period together with category as SMA should always be maintained. [Refer our step-by-step reaction in Q9 above] Effectively, are we saying the grant associated with moratorium can also be a stoppage of NPA category cash net usa loans title loans?