The following are the policy guidelines adopted by NHFL with regard to implementation
of the Resolution Framework 2.0 as per the Board approved policy of the Company.
(Housing Loans and Small Business Loans).
RBI vide notification DOR.STR.REC.11/21.04.048/2021-22 dated 05.05.2021 issued
guidelines on Resolution Framework – 2.0: Resolution of Covid-19 related stress of
Individuals and Small Businesses.
Resolution Framework 2.0: Resolution of COVID-19 stress for Individuals and Small
Businesses.
| Eligibility and Applicability | The credit facility / investment exposure to the borrower shall be
standard as at 31.03.2021. The following borrowers (standard as on 31.03.2021) shall be eligible for resolution plan under the Framework 2.0 Individual Housing Loans, PML/ LAP & Small Business Loans including COVID Relief Loans: The Resolution Framework 2.0 is applicable to Individuals who have availed Housing Loans, PML/ LAP & Small Business Loans including COVID Relief Loans from the company. |
|---|---|
| Identification of Stress | 1. Individual Housing Loan, PML/ LAP & Small Business
Loans including COVID Relief Loans: Identification of stress shall be based on the loss of earnings due to Covid pandemic through a self-declaration (submitted by the borrower). |
| Invocation of Resolution Plan | Resolution under this framework shall be provided only to the
borrowers having stress on account of Covid-19. Resolution under the Framework shall be invoked not later than 30.09.2021 and resolution Plan shall be finalized and implemented within 90 days from the date of invocation of the resolution process. The resolution process under this window shall be treated as invoked when the company and the borrower agree to proceed with the efforts towards finalizing a resolution plan to be implemented. In respect of applications received from the borrowers for invoking resolution process under this window, the assessment of eligibility for resolution as per the guidelines of the Frame work shall be completed, and the decision on the application shall be communicated in writing to the applicant by the Company within 30 days of receipt of such applications. The date of such communication by the company to the borrower agreeing to the Resolution Plan shall be treated as the date of invocation. |
| Conditions of implementation of Resolution Plan | The resolution plan shall be deemed to be implemented only, if
all of the following conditions are met: a. All related documentation, including execution of necessary agreements between company and borrower are completed. b. The changes in the terms of conditions of the loans get duly reflected in the books of the company; and, c. Borrower is not in default with the company as per the revised terms. |
| Features of Resolution Plan 2.0 | The resolution plans consist of the following:
>> Rescheduling payments of instalments/EMIs of loans.
Conversion of any interest accrued, or to be accrued, into
another credit facility, or, granting of moratorium, based
on an assessment of income streams of the borrower,
subject to a maximum of two years from the date of
implementation of resolution plan. >> The moratorium period, if granted, shall come into force immediately upon implementation of the resolution plan. >> The extension of the residual tenor of the loan facilities may also be granted with/without moratorium. In such cases, the overall cap on extension of residual tenor inclusive of moratorium period shall be maximum of two years. 2. Individual Housing Loans( PML/LAP) for Business Purposes and Small Business Loans. The following scenarios shall be followed >> Company may allow extension of the residual tenor of the loan, with or without moratorium, by a period not more than two years. The moratorium period, if granted, shall come into force immediately upon implementation of the resolution plan under this framework. >> The extension of the residual tenor of the loan facilities may also be granted to borrowers, with or without payment moratorium. The overall cap on extension of residual tenor, inclusive of moratorium period, if any permitted, shall be maximum of two years. >> Company may also exercise option to reschedule repayment of Principal/Interest. With all the steps, repayment period can be extended up to a maximum of 2 years only. >> Fresh repayment schedule to be generated in case of Term Loans, where Resolution Plan is implemented under this framework. |
| Extension of moratorium and residual tenor of loans where Resolution Framework 1.0 implemented | In case of borrowers where resolution plan had been
implemented in terms of the Resolution Framework – 1.0, and
where the resolution plan had availed no moratorium or
moratorium of less than two years and / or extension of residual
tenor by a period of less than two years, it is now permitted to
modify the moratorium and extension of residual tenor up to a
period of two years only. The overall caps on moratorium and /
or extension of residual tenor granted under Resolution
Framework – 1.0 and this framework combined, shall be
maximum of two years. • However, the same can be permitted to accounts which are fulfilling the criteria under Resolution Framework 2.0. The guidelines regarding eligibility, invocation and implementation shall be applicable. |
| Rate of Interest | 1. Individual Housing Loans PML/ LAP & Small Business Loans including COVID Relief Loans: Existing ROI will continue |
| Documentation Charge | Housing Loans and PML/LAP loans for Business purposes and
Small Business: One-time fee of Rs 300 and GST. |
| Security | 1. Housing Loans:
Existing securities shall continue to be extended for the
restructured facilities. 2. Housing Mortgage Loans to Business purposes and Small Business Loans, ( PML/ LAP & Small Business Loans including COVID Relief Loans) Existing securities shall continue. |
| Disclosure and Credit Reporting | The credit reporting by the company in respect of borrowers where the resolution plan is implemented under this window shall reflect the “restructured due to COVID-19” status of the account. The credit history of the borrowers shall consequently be governed by the respective policies of the credit information companies as applicable to accounts that are restructured. |
| Grievance Redressal | In case of any customer grievance arising due to Resolution Plan 2.0, Customer would have the option to register the grievance on Company’s website - Click here. Existing Grievance Redressal Mechanism would be applicable to grievances arising due to Resolution Plan 2.0 as well. |
| Miscellaneous Aspects | 1. If a borrower has more than one loan account, then
Requests for Resolution would be required to be given
separately. 2. MD & CEO, NHFL would be the Nodal authority for the implementation of this Resolution framework. |
| Contact | If any customer needs any clarifications on NHFL’s Resolution
plan as above, Please contact your nearby NHFL Branch for
further details Or
kindly contact: 0431-4220948 (or) admin@nhflindia.com |