FAQs for Resolution Framework for COVID-19 Related Stress

Resolution Framework is to provide relief to borrowers affected by the Covid-19 pandemic.

Individual borrowers  having stress on account of  Covid-19 pandemic due to following situations:
   i. Your salary/income in Aug 2020 has got reduced when compared to Feb 2020
   ii. Reduction/suspension in salary during lockdown period
   iii. Job loss/closure of business
   iv. Closure during lockdown/reduced business activity of units/shops/business establishments in case of self-employed/professionals/businessmen

The following  loans to individuals are covered under the Framework:
   i. Vastu Siddhi home loans
   ii. Saraswati Education Loans
   iii. Auto Loans (other than loans for commercial use)
   iv. Kwik lap loans (other than for business purpose)
   v. Personal loan

No. To be eligible under the Framework, the following eligibility conditions need to be fulfilled:
i. The loan should be a “STANDARD ACCOUNT” as on date of application for relief under this framework and should have been ‘standard’ and also not in default for more than 30 days as on 01.03.2020
ii. The credit facilities continue to be classified as “Standard Account till the date of invocation the application of the restructuring. The date of invocation is the date on which both the borrower and Saraswat Bank agree to proceed with the resolution plan.
iii. Borrower salary/income should have been affected by Covid-19 pandemic.

As per RBI circular dated August 6,2020  only those loan accounts that existed in Banks books on 01.03.2020 are eligible for consideration under this Framework.

Contact Home Branch

Copies of the following documents need to be submitted along with the application form at the Home Branch.
In case of Salaried Borrower:
i. 3 months pre covid Salary slips from January 2020 to June 2020 and latest two months salary slips.
ii. Accounts statement of the saving account where salary is credited.
iii. Letter of discharge from job (in case of job loss)
iv. A declaration about probable date of restoration of the original salary.

In case of Businessman Borrower:
i. The provisional/audited balance sheet for F.Y 2019-20
ii. Banks statements for last 12 months showing significant reduction in Credit Turnover and also turnover in the latest month reflecting restart of activity.
iii. Position of statutory dues.
iv. GST for last four quarters (ended December 2019, March 2020, June 2020 & September 2020)
v. Declaration that now business is gradually restarted which is affected by covid-19 pandemic.

Assessment of resolution measures required is based on inputs given by borrower.
The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring.
In any case, such sanction has to be received before 31.12.2020.   Hence customer’s request/application should be received by bank latest by 31.10.2020.

The following relief/relaxations may be sanctioned under the Framework subject to compliance of bank norms:
Rescheduling of installments and extension of tenure  including  moratorium  granted if any , subject to maximum of 2 years.

Yes. On account of moratorium granted, the tenure of your loan will be extended by the period of moratorium and the EMI payable after the moratorium will be recalculated and advised to you.

Yes, you will be required to pay additional interest of  1% p.a over and above your current pricing for the remaining tenure of the loan, in order to offset partial cost of additional provisions required to be made by the Bank as per statutory guidelines.

Yes, you may apply for relief under this Framework in more than one account.

Normally, the Bank will endeavor to process your application in about 10 working days of your submitting the application.

Yes @0.10% of the restructured amount with cap of Rs.2.50 lac

You will be issued Sanction Letter (in duplicate) stating the details of relief sanctioned to you under the Framework and other terms & conditions. You will have to return the duplicate copy duly executed & signed by all the signatories to the loan & also guarantors (if any) in token of having accepted the terms and conditions contained therein within 10 days.

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