COVID-19 Moratorium Policy
Siemens Factoring Private Limited (SFPL)
This guideline has been formulated in line with the RBI Directive as per “Statement of Development and Regulatory Policies released on May 22, 2020”, where certain regulatory measures were announced to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic, to ensure the continuity of viable businesses.
1.2 RBI Regulatory Package:
The detailed instruction for term loans is as follows:
- On March 27, 2020, the RBI permitted all lending institutions to allow a moratorium of three months on payment of instalments in respect of all term loans outstanding as on March 1, 2020. In view of the extension of the lockdown and continuing disruptions on account of COVID-19, it has been decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from June 1, 2020 to August 31, 2020. Accordingly, the repayment schedule and all subsequent due dates, as also the tenor for such loans, may be shifted across the board by another three months.
- As the moratorium/deferment is being provided specifically to enable borrowers to tide over COVID-19 disruptions, the same will not be treated as changes in terms and conditions of loan agreements due to financial difficulty of the borrowers and, consequently, will not result in asset classification downgrade.
- As earlier, the rescheduling of payments on account of the moratorium/deferment will not qualify as a default for the purposes of supervisory reporting and reporting to credit information companies (CICs) by the lending institutions. CICs shall ensure that the actions taken by lending institutions in pursuance of the announcements made do not adversely impact the credit history of the borrowers.
- In respect of all accounts for which lending institutions decide to grant moratorium/deferment, and which were standard as on March 1, 2020, the 90-day NPA norm shall also exclude the extended moratorium/deferment period. Consequently, there would be an asset classification standstill for all such accounts during the moratorium/deferment period from March 1, 2020 to August 31, 2020. Thereafter, the normal ageing norms shall apply.
In line with the above directive, SFPL shall provide support to the term loan borrowers on specific requests raised by them, subject to satisfactory assessment that the request has been raised on account of COVID-19 economic distress and not due to other financial difficulties faced and the repayments were regular for the preceding 12 months from March 01st 2020 with classification of Standard asset as on March 01st 2020. The borrower need to initiate a written request and SFPL representative will get in touch with the borrower.
SFPL reserves its right for seeking any information from the borrower as may be required for the completion of this assesement.
The borrowers can contact their Relationship Managers for placing their requests.
Frequently Asked Questions
If you have availed a term loan facility from SFPL and are a Standard borrower as per SFS guidelines as on February 29, 2020, you are eligible to avail this offer. For additional information on the eligibility criteria, refer to the COVID-19 Moratorium Policy (above) or search for it on www.siemens.co.in/finance.
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Reach out to us in case of any other questions
At SFS COF India, we are committed to keeping customers at the core of everything we do. We are here to answer any questions you may have, especially regarding our COVID-19 policy. We hope you and your loved ones are safe and healthy.