The Entrepreneurs and Financial Customers Association of India (EFCAI) has urged Union Finance Minister Nirmala Sitharaman to issue direction to banks and NBFCs not pressurize the borrowers to service EMIs including Credit Card dues in accordance with the announcement made by RBI till August 31.
EFCAI working chairperson and former chairman, Orissa Assembly of SSmalland Medium Enterprise
Capt Harendra N Mahapatra in a memorandum to FM Sitharaman and MSMEs Minister Nitin Gadkari, MSMEs State Minister Pratap Sarangi, RBI Governor Shaktikanta Das, and MSME Secretary AK Sharma has sought their intervention as borrowers were still under pressure from bankers despite the RBI's rule of moratorium till August 31.
This action by the lenders has put the borrowers in great difficulties since suddenly they discover their accounts dry or their balance in their account missing! Such amounts collected may kindly be credited back to the borrowers’ accounts, the memorandum said.
The concept that the borrowers had to apply for moratorium by visiting their site was a difficult proposition since their sites were either down or not responding. Further, a small borrower may not have access to such facilities. In such cases sending an email, requesting for the moratorium or just informing them verbally by phone should be treated as sufficient, it said.
Some lenders have also planned to collect all their deferred EMIs in September instead of deferring the same. This was not as per RBIs announcement. Hence the EMI tenure must be extended by the moratorium period, the Government was urged.
Similarly many banks which have sanctioned the loan under GECL scheme do not allow their borrowers for deferment of moratorium stating that the borrower can not avail double benefits, which is not actually the case. They may kindly be advised to defer the EMIs for 6 months as per the request of the borrowers to improve the liquidity position during this period of Covid-19 pandemic, it said.
For the deferred period the lenders may charge simple and reasonable interest if they can't waive the same but charging of penal interest, bouncing charges and exorbitant rate of interest shall be harsh on the MSMEs to service. This may kindly be considered graciously, it urged further.
Last but not the least, the memorandum urged that the CIBIL score should not be taken in to consideration for assessment of credit rating of any borrower during the moratorium period.