Wednesday, April 1, 2020

HDFC Bank’s relief measures to assist businesses and individuals

The HDFC Bank has sent out a circular to all its branches with instructions on how to provide relief measures to its customers who are affected by the COVID 10 pandemic. The instructions are listed as per the Central Bank Circular dated March 23, 2020, in respect of providing relief measures to COVID-19 affected businesses and individuals, a bank official said.

The relief measures will be taken upon submission of a written request by the customer and the final date for submission will be April 30, 2020.

The eligible business sectors include, a. Tourism, Direct and indirect Export related businesses including, Apparel, IT, Tea, Spices, Plantation and Related logistics suppliers that have been adversely affected by work disruption and/or overseas shutdowns due to COVID-19.

b. Small and Medium Enterprises (SMEs) engaged in Manufacturing, Services, Agriculture (including Processing), Construction, Value Addition, Trading, and Domestic Pharmaceutical Suppliers with an annual turnover of Rs.1 billion and below.

C. Self-Employment Businesses and Individuals who have lost their jobs or income due to outbreak of COVI-19.

d. Foreign Currency earners who have to repay their loans out of foreign currency and whose income has been adversely affected due to COVOD-19.

The facilities to be supported under this relief scheme will be loans, leases and pawning and the concessions for existing performing loans as at 25.03.2020 are personal loans-

a. For Private Sector Non-Executive employees - A Moratorium up to May 30, 2020 on repayment of the loan. b. For all personal loans below Rs. 1,000,000.00 - A Moratorium of 03 months on repayment of the loan.

a. For Leasing Facilities where total value of rentals is below Rs. 1,000,000.00,at the time of granting the facility - A Moratorium of 3 months on repayment of lease rentals. b. For Three-Wheelers, School Vans, Lorries, Small Goods Transport Vehicles and Buses Granted under “Self-Employment Schemes” - A 6 month moratorium on lease rentals.

For Industries and Sectors coming under above 1 (a –c)- A Moratorium of 6 months on the repayment of Loan/Lease facilities.

Pawning Facilities falling due or maturing up to 25.03.2020 shall be extended up to September, 30 2020.

With regard to Non-Performing facilities as at 25.03.2020, when a NP customer fulfills the eligibility criteria and required conditions, such customer will become a “Participant” of this relief scheme.

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