State Bank of India (SBI), country’s largest public sector lender has introduced one-time settlement (OTS) scheme for recovering bad loans in its micro, small and medium enterprises (MSME) portfolio as it has seen a net increase of Rs 3,902 crore in bad loans in its MSME portfolio in the first nine-months of the current financial year. The bank is also providing discounts to borrowers.
Increasing non-performing assets in the MSME sector with investment in plant and machinery of up to Rs 10 crore will be covered under the OTS scheme. Many MSME units have been affected by the sharp rise in interest rates and fall in demand for their products.
Further, the bank has also thrown in an incentive to make the OTS attractive. It will give 15% and 10% discount on the OTS amount to those borrowers who make full payment within one month and three months, respectively, from the date of approval of the OTS.
SBI has planned to offer new, lower rates to old home loan borrowers. Currently, borrowers who have taken loans linked to SBAR (State Bank Advance Rate or the prime lending rate) are paying as much as 2-3 percentage points more than existing floating rates that are linked to the Base Rate, as base rate is lower than the SBAR.
DISCLAIMER: Accord Fintech provides the Content on “AS IS” basis without any express or implied warranties. Accord Fintech does not warrant the accuracy, timeliness, completeness, adequacy, merchantability, or fitness for a particular purpose of the Content, and Accord Fintech shall not be liable to Licensee or to any third party with respect to any actual or alleged inaccuracy, untimeliness, incompleteness, inadequacy, unmerchantbailty or unfitness.
Copyright 2012 Accord Fintech Pvt. Ltd., distributed by Contify.com