ஆசிர்வாத் மைக்ரோபைனான்ஸ் லிமிடெட்          Asirvad Microfinance Limited          आशीर्वाद माइक्रोफिनॅन्स लिमिटेड         ആശിർവാദ് മൈക്രോഫിനാൻസ് ലിമിറ്റഡ്          ಅಸೀರ್ವಾಡ್ ಮಿಕ್ರೊಫಿನನ್ಸೆ ಲಿಮಿಟೆಡ್          ਅਸਿਰਵਾਦ ਮਿਕਰੋਫਈਨਂਸੇ ਲਿਮਿਟੇਡ          ଆଶୀର୍ବାଦ ମଇକ୍ରୋଫାଇନାନ୍ସ ଲିଃ          আশির্বাদ মাইক্রো ফাইনান্স লিমিটেড

Moratorium Policy 2.0

This document is a Moratorium policy of Asirvad Micro Finance Ltd ( AMF or The Company).

Background

Reserve Bank of India, vide its circular dated 23-05-2020, has extended the moratorium period by further three months , i.e. from 1st June 2020 to 31st August , 2020. As per the circular various lending institutions including AMF are permitted to grant a moratorium of three months on payment of all instalments (PEMI / EMI) falling due between June 1st , 2020 to August 31, 2020. Accordingly, 

The Board of Directors of AMF have approved following policy guidelines on extension of Moratorium.

To Our Lenders – On Books Borrowing

AMF is currently carrying enough liquidity to last till October 2020 and also have a strong pipeline of Term Loan, TLTRO.2 and Special Liquidity Facility from NABARD and SIDBI and hence AML will not seek further deferment of repayment of principal / interest on company’s borrowings and will make the payment of principal and interest on due dates.

To Our Lenders – Of Books (Securitization)

For all securitization deals We will seek a moratorium for deferment of payables of since we are offering a moratorium to all our borrowers, including those whose receivables are assigned to assignee, and securitization payouts are linked with the actual collection made , seeking moratorium is the only option available. However we will be obtaining the consent of all of our assignee to grant the moratorium to all the underlying borrowers.

For Our Borrowers

For AML’s borrowers, it is proposed to defer all the instalment due from 01st June 2020 to 31st August 2020, subject to the consent of the borrowers. Hence, it is proposed 

To grant an extension of moratorium of further three months on payment of all instalments falling due between 1st June, 2020 to August 31, 2020. The repayment schedule for such loans as also the residual tenor, will be shifted across the board by additional three to four months after the moratorium period and thus overall tenure is likely to be shifted by four to six months from the original maturity date. Interest shall continue to accrue on the outstanding portion of the term loans during the moratorium period. 

However, there are borrowers, who have willingly decided not to seek moratorium or seeking partial moratorium. Few borrowers have already paid EMI regularly during lockdown since March for all the months till date and if they continue to pay till August then Such borrowers will be out of moratorium and will not be charged Moratorium Interest , further the borrowers who has not paid us not all the EMIs due in the moratorium period but have paid for few Months will be granted moratorium for the remaining months till the end of August 2020 only and will be charged moratorium interest accordingly, subject to the consent of the borrowers. 

Moratorium not provided for over due borrowers as on February 20. 

No penalty shall be charged for deferred instalment for both fresh loan disbursements and for existing loan repayments during this period. 

While our recovery and Branch staff shall make all possible efforts for recovering the overdue in time, they have to adopt softer approach (wherever required) in view of the prevalent conditions. This policy will come into force with effect from 1st June 2020 and remain effective till 31st August, 2020.