The Reserve Bank of India extended the small loans repayment window by 30 days, now allowing 90 days for those with housing, car, farm, and other loans worth less than Rs 1 crore.
The RBI said in a notification, "On a review, it has been decided to provide 30 days, in addition to the 60 days provided (on November 21)"
The rule applies to loans payable between November 1 and December 31 this year. On November 21, the central bank had offered an extra 60 days to those with such loans. Those with running working capital accounts, where the sanctioned limit is Rs 1 crore, term loans for business purposes with the same limit, loans by non banking finance companies and micro finance institutions are among those who can avail of the window.
According to the RBI notification, running working capital accounts or crop loans with the sanctioned limit of Rs 1 crore or less would be eligible for this benefit.
Besides, it said, "Term loans for business purposes, secured or otherwise, the original sanctioned amount whereof is Rs 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI). This shall include agriculture loans."
The RBI’s decision is reportedly to ease fears of an increase in loan defaulting after demonetisation.