NOTICE: One-time Restructuring Scheme for MSME Accounts

Sundaram Finance has extended a One-time Restructuring Scheme for MSME contracts to support businesses severely impacted due to the COVID-19 pandemic and resultant stress caused in the economy.

This Scheme is available till March 31, 2021.

As per the Scheme, asset classification of the restructured contracts of Customers will continue as ‘Standard’ as on the date of implementation of the restructuring, subject to the following conditions:

  1. Customer’s business MUST have been affected by COVID-19 and sufficient evidence should be provided to the satisfaction of the Company.
  2. Customer should be an MSME (Micro Small Medium Enterprise) as per the latest Guidelines of June 26, 2020. Ideally, Customer should have Udyam Registration Number.
  3. Customer should be GST registered, unless exempt.
  4. Contract was a ‘Standard Asset’ (Days Past Due less than or equal to 90) as on March 1, 2020.
  5. The aggregate exposure, including non-fund-based facilities, of banks and NBFCs to the Customer did not exceed Rs.25 crore as on March 1, 2020.
  6. The restructuring of the contract is implemented on or before March 31, 2021.
  7. Already restructured contracts are not eligible for this Restructuring Scheme.

The Scheme will be extended subject to viability assessment and production of supporting documents as per internal guidelines.

Important documents to be submitted for restructuring:

  • Audited financials for FY 2018-19
  • Provisional/ Audited financials for FY 2019-20
  • Projected financials for FY 2020-21, and FY 2021-22.
  • Chartered Accountant’s certificate (format available with loan servicing Branch)
  • Udyam Certificate or UAM Certificate
  • Up-to-date bank statements of the account, in which the Customer is transacting from April 2019.

Restructuring will involve a reduction of the monthly instalments for the next few months and an extension of the tenure of the contract. The restructuring shall be done at the same rate applicable at the time of execution of the contract, i.e. there will be no increase in the interest rate. However, a onetime Rescheduling Charge and Processing Fee shall be applicable. Additional collateral security may be required, based on internal guidelines.

Advisory to Customers: Please avail Restructuring only in case of genuine stress in your business. Restructuring will involve elongation of the contract tenure as well as an increase in the total amount to be repaid over the duration of the contract. We would also be required to update the credit bureau status of the contract as “Restructured”.

Please click here (please keep your customer code ready) to check indicative options relating to changes in tenure and EMI. Actual numbers may vary.

Acceptance of restructuring request is subject to internal guidelines of Sundaram Finance.

Please contact your servicing Branch for further details. Click here for contact details of our Branches.