Syndicate Bank said on Tuesday it is providing a breather to all of its Micro, Small and Medium Enterprises (MSME) customers by extending the facility for restructuring of the loan.
This will provide them a flexible repayment option and prevent their accounts from being classified as Non-Performing Assets (NPAs), it said in a statement.
Restructuring of loan is a facility given to customers to reschedule the repayment structure of their loan accounts, it was noted.
The provision is given to those customers whose units are under stress due to various internal or external reasons, thereby helping them to stabilise their business over time.
The Bank's MD & CEO, Mrutyunjay Mahapatra, said MSMEs contribute significantly to the country's economic growth.
"We understand they are facing some difficult times these days due to various unforeseen reasons.
As a segment, MSME has always been a focus for Syndicate Bank as they add prominently to the diversified portfolio of the bank.
With this loan restructuring facility, we are hoping to provide them the needed support that will enable them to prosper and grow better, he said.
Restructuring will provide customers facilities like rescheduling the repayment by providing them longer repayment periods; giving repayment holidays to reduce the loan repayment obligation for their stressed business.
It will also provide them additional finance to tide over the situation, convert the working capital loan into term loans and converting the overdue interest portion in working capital alone into term loan so as to offer a staggered repayment, the bank said.
Any MSME which isGST-registered (except for ones exempted from it) with aggregate debt of Rs 25 crore or below as on January one, 2019 are eligible to apply for this facility, the statement added.
Disclaimer: No Business Standard Journalist was involved in creation of this content
