ORANGE RETAIL FINANCE INDIA PRIVATE LIMITED
This Policy was approved by the Board of Directors on 6th April 2020 through resolution by circulation.
The World Health Organization recently declared COVID 19 to be a pandemic. It is predicted that Indian Economy will have a severe impact and it would lead to various issues including delayed salary credits for the salaried segments and deferred cash inflow for self-employed etc, wherein it would directly impact the repayment of almost all finance facilities lent by Bank/NBFCs and FIs. In this regard, the Reserve Bank of India vide its Notification RBI/2019-20/186 – DOR No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020, announced certain regulatory measures to mitigate the burden of debt servicing brought about by disruptions on account of the COVID 19 pandemic and to ensure the continuity of viable businesses. The Board of Directors (“Board”) of Orange Retail Finance India Private Limited (“Company”) has decided to grant moratorium to its customers and the Company also being a borrower wishes to approach its lenders / assignees / trustees to avail the moratorium. For the purpose, the Board of the Company has approved the Policy on Moratorium due to financial stress caused by COVID-19 and agrees to provide moratorium to all its customers up to a maximum of 3 months from 1st March 2020 to 31st May 2020 with respect to loans outstanding as on 1st March 2020 subject to the eligibility criteria and terms and conditions as mentioned below:-
- 3 months moratorium i.e. from March 2020 to May 2020 is applicable to all the customers of the Company who has not paid their EMI (component of Interest and Principle) dues for the month of March 2020. Customers need to specifically opt out if they don’t need the moratorium
- Customers who have cleared their dues for the month of March 2020 and fails to clear the EMI dues for the month of April 2020 and May 2020 will be eligible for moratorium of two months, i.e., for the months of April and May 2020. Customers need to specifically opt out if they don’t need the moratorium.
- Customers who have cleared their dues for the month of March and April 2020 and fail to clear the EMI dues for the month of May 2020 will be eligible for moratorium of one month,
i.e., for the month of May 2020 alone. Customers need to specifically opt-out if they don’t need the moratorium.
- In addition to the above at the discretion of the Board and on the merits of the respective customers, Moratorium may be granted to customers requesting for the same throughformal written communication. Format of request letter is available in the website of the Company www.orangeretailfinance.com.
Terms and Conditions
- Moratorium is granted to the EMI (component of Interest and Principle) due that falls during the month of March 2020 to May 2020 (up to a maximum of 3 months) in respect of all loans outstanding as on 1st March 2020.
- Payments will continue to be accepted during the moratorium period. Hence NACH / Auto debit Mandates for EMIs falling due shall be presented as per schedule.
- In respect of the customers to whom the moratorium is granted by the Company the residual tenor of the loan will be extended by such moratorium period.
- Interest shall accrue during the Moratorium Period. Interest would be computed at the Contracted Rate (the same interest rate as is agreed to by the customer in the underlying Loan Agreements with the Company) on the Principal outstanding for the Moratorium period.
- Overdue Interest / Late Payment Charges shall not be applicable during the moratorium period.
- Since the Moratorium / Deferment is being provided specifically to enable the borrowers to tide over economic fallout from COVID-19, the Non-Payment of EMI dues during the month of March 2020 to May 2020 will not be treated as concession or change in terms and conditions of loan agreements. Consequently, the asset classification shall be determined based on revised due dates and the revised repayment schedule.
- The rescheduling of payments, including interest, will not qualify as a default for the purposes of supervisory reporting and will not be reported to the Credit Information Companies (CICs)
- The Company has securitised / assigned its loan receivables to Banks / Trustees / Institutions and the Company is appointed as servicer for collection of instalments fromthe borrowers and remittance of the same to Banks/Trustees/Institutions/. The Company has also availed Term Loans/Cash Credits from Banks/Institutions. Hence the Company will seek consent and obtain approval from the concerned Banks/Trustees/Institutions for grant of moratorium for the purpose of securitization / assignment instalments / amounts falling due between March 1, 2020 to May 31, 2020. The Company will also seek and avail moratorium for payment of Principal and / or Interest from the lending Banks/Institutions to the Company falling due between March 1, 2020 and May 31, 2020 .
- The Company has securitised / Assigned its Loan Receivables to Banks / Trustees / Institutions and the Company is appointed as servicer for collection of instalments from the borrowers and remittance of the same to Banks / Trustees / Institutions. The Company has also availed Term Loans / Cash Credits from Banks / Institutions. Hence the Company will seek consent and obtain approval from the concerned Banks / Trustees / Institutions for grant of moratorium for the purpose of securitization / Assignment Instalments / Amounts Falling due between March 1, 2020 to May 31, 2020. The Company will also seek and avail moratorium for payment of Principal and or Interest from the lending Banks / Institutions to the Company falling due between March 1, 2020 and May 31, 2020
- The Key Management personnel of the Company shall ensure that the above instructions are properly communicated down the line for implementation to all the operations and branch executives of the Company
- This policy shall be displayed on the web site of the Company www.orangeretailfinance.com
While this policy outlines the broad internal guidance that the Company will follow to take decisions regarding moratorium, The Company Retains the Discretion to take decisions regarding this Policy Depending on case-specific issues or nuances. The Company Reserves the right to amend the policy within the framework of RBI regulations.