Mumbai, September 2: Micro, small and medium enterprises (MSMEs) and Retail borrowers who are still under financial stress amid the coronavirus pandemic and are unable to repay their loans even after availing the 6-month moratorium provided by the Reserve Bank of India, may get another six-month moratorium only for principal repayments.
The news reported by Economic Times mentioned that Banks and NBFCs may give six-month moratorium on principal repayments for retail and MSME borrowers. The intention is to restructure loans for only those borrowers who really need restructuring, according to reports.
The six-month moratorium on loan repayments ended on August 31. However, borrowers who still feel that they can not start loan repayment now can approach their lenders for the restructuring of their loan.
The Reserve Bank of India recently extended the existing debt restructuring scheme for stressed MSMEs by three months to March 31, 2021, in view of the distress brought upon by the COVID-19 outbreak