Prudential Guidelines for Consumer Financing and Small Enterprise Financing
Please refer to our BRPD Circular No. 07, dated 03 November, 2004 on the captioned subject through which two separate guidelines, namely Guidelines for Small Enterprise Financing and Guidelines for Consumer Financing were forwarded for implementation. It is to be mentioned that amendments were made in Regulation-13 & Appendix X of Small Enterprise Financing and Regulation- 4 & Appendix XXI of Consumer Financing vide BRPD Circular No. 10, dated 20 August, 2005 where-in loans were classified into 4 categories namely 1. Special Mention Account (SMA) 2. Substandard (SS), 3.Doubtful (DF) and 4. Loss (BL) along with some other amendments.
The issue has been reviewed further and it has been decided that loans will have to be classified into 8 (eight) categories 1. Superior (SUP), 2.Good (GD), 3. Acceptable (ACCPT) 4.Marginal/Watchlist (MG/WL), 5. Special Mention Account (SMA) 6. Substandard (SS), 7.Doubtful (DF) and 8. Loss (BL) instead of the existing four categories. The revised Appendix X containing guidelines for Small Enterprise Financing and Appendix XXI containing guidelines for Consumer Financing are enclosed herewith.
Please acknowledge receipt.