LOAN RESCHEDULING. REF: BRPD CIRCULAR NO. 06 DATED 29.05.2013.

Please refer to BRPD Circular No.15 dated 23.09.2012 on the captioned subject.

In light of current credit conditions and the greater preponderance of longer term finance, following amendments have been brought into the circular:

  1. Section 2.c) of the circular will be replaced as under:

“02. c) Time limit for rescheduling Fixed Term Loan:

The loan which is repayable within a specified time period under a prescribed repayment schedule is treated as Term Loan. In case of rescheduling of any classified Fixed Term Loan, following time-limit may be added with the expiry date/repayment date of last installment to determine the repayment schedule which will be started from the date of rescheduling. If the loan is rescheduled after the expiry date, the following time-limit will be applicable from the date of rescheduling:

Frequency                       Classified as Sub-standard                  Classified as Doubtful                          Classified as Bad/Loss

First Rescheduling         Maximum 36 (thirty six) months           Maximum 24 (twenty four) months       Maximum 24 (twenty four) months

Second Rescheduling    Maximum 24 (twenty four) months       Maximum 18 (eighteen) months           Maximum 18 (eighteen) months

Third Rescheduling        Maximum 12 (twelve) months                               Maximum 12 (twelve) months                               Maximum 12 (twelve) months

Conditions: During the rescheduled period all required principal and interest payments must be made. Rescheduled amount should be repaid in monthly/quarterly installments. If the amount of defaulted installments is equal to the amount of 6 monthly or 2 quarterly installments, the loan will be classified as Bad/Loss.”

  1. Section 2.d) of the circular will be replaced as under:

“02. d) Time limit for rescheduling for Short-term Agricultural and Micro-Credit:

In case of rescheduling of any classified Short-term Agricultural and Micro-Credit, 6 months may be added with following time-limit from the day after the expiry date/repayment date of last installment to determine the repayment schedule which will be started from the date of rescheduling. If the loan is rescheduled after the expiry date, the following time-limit will be applicable:

First Rescheduling         Repayment time limit for rescheduling should not exceed 2 (two) years.

Second Rescheduling    Maximum 1(one) year.

Third Rescheduling        Maximum 6(six) months.

This circular will come into force with immediate effect and all other instructions in BRPD Circular No.15 dated 23.09.2012 will remain unchanged.

Please acknowledge receipt.

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