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    Addendum Irac Norms

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    This document outlines additional terms and conditions for a small business loan. It specifies that loan repayments and charges will be deducted on specific dates each month. It notes that if payments are not made on time, the account will be considered overdue as of that date. It also provides an example of how loan accounts are classified as special mention accounts or NPAs based on the number of days an payment is outstanding. Borrowers must sign accepting these supplemental terms, which become part of the original loan agreement.

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    Addendum Irac Norms

    Uploaded by

    only4zbackup
    15 views1 page
    This document outlines additional terms and conditions for a small business loan. It specifies that loan repayments and charges will be deducted on specific dates each month. It notes that if payments are not made on time, the account will be considered overdue as of that date. It also provides an example of how loan accounts are classified as special mention accounts or NPAs based on the number of days an payment is outstanding. Borrowers must sign accepting these supplemental terms, which become part of the original loan agreement.

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    Axisbank_Addendum

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    addendum-irac-norms

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    This document outlines additional terms and conditions for a small business loan. It specifies that loan repayments and charges will be deducted on specific dates each month. It notes that if payments are not made on time, the account will be considered overdue as of that date. It also provides an example of how loan accounts are classified as special mention accounts or NPAs based on the number of days an payment is outstanding. Borrowers must sign accepting these supplemental terms, which become part of the original loan agreement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    15 views1 page

    Addendum Irac Norms

    Uploaded by

    only4zbackup
    This document outlines additional terms and conditions for a small business loan. It specifies that loan repayments and charges will be deducted on specific dates each month. It notes that if payments are not made on time, the account will be considered overdue as of that date. It also provides an example of how loan accounts are classified as special mention accounts or NPAs based on the number of days an payment is outstanding. Borrowers must sign accepting these supplemental terms, which become part of the original loan agreement.

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    ADDENDUM – IRAC Norms

    Small Business Banking- Loan Application/Account No. [ ] additional terms and conditions

    With reference to the RBI circular on Prudential norms on Income Recognition, Asset Classification and Provisioning
    pertaining to Advances – Clarifications dated November 12, 2021 you additionally request and agree to the
    following:

    • [Unsecured Business Loans] To kindly deduct my EMI and other repayment/charges in terms of my Term Loan
    account on ___ of every month year commencing from __/__ /20__. I understand that if I do not pay my EMI
    on the above-mentioned date, my account will be considered as ‘Overdue’ from the end of that date.
    (Strike off if not applicable)

    • [Secured Term Loans] To kindly deduct my Principal Installment and other repayment/charges in terms of my
    Term Loan account on ___ of every month commencing from __/__ /20__. Kindly deduct my interest and
    other repayment/charges in terms of my Term Loan on the day of every month commencing from __/__
    /20__. I understand that if I do not pay my dues on the above-mentioned date, my account will be
    considered as ‘Overdue’ from the end of that date.

    • [CC/OD] To kindly deduct my interest and other repayment/charges in terms of my CC/OD account on 1st
    of every month commencing from __/__ /20__. I understand that if I do not pay my dues on the above-
    mentioned date, my account will be considered as ‘Overdue’ from the end of that date. (Strike off if not
    applicable)

    • My frequency of repayment shall be at MONTHLY rests. (Strike off if not applicable)

    • I shall be required to pay my principal, interest and all other charges on ______________, ________________,
    _____________ (Strike off if not applicable)

    • I understand that the circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019 on ‘Prudential


    Framework for Resolution of Stressed Assets’ requires the lenders to recognize incipient stress in borrower
    accounts, immediately on default, by classifying them as special mention accounts (SMA). Accordingly, the
    date of SMA/NPA shall reflect the asset classification status of my loan account at the day-end of that
    calendar date. An illustration of such classification is as follows:

    ➢ SMA 0 - If due date of a loan account is March 31, 2021, and full dues are not received on this date, the
    account shall be SMA 0 on day end of March 31, 2021.
    ➢ SMA 1 - If it continues to remain overdue, then this account shall get tagged as SMA-1 upon completion
    of 30 days of being continuously overdue i.e. April 30, 2021.
    ➢ SMA 2 - If the account continues to remain overdue, it shall get tagged as SMA-2 on May 30, 2021
    ➢ NPA – If the account continues to remain overdue further, it shall get classified as NPA on June 29, 2021
    Please note the additional terms and conditions as specified above shall form an integral part and shall be read in
    conjunction with the Loan Agreement executed by you, as if these additional terms and conditions have been
    specifically incorporated therein.

    I/We have read the terms & conditions mentioned in this letter & accept the same.

    (1)___________________________, (2)_____________________________, (3)__________________________


    Signature of Customer/Borrower.

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