Frequently Asked Questions
What is a Resolution Plan?
• Due to the economic fallout on account of the Covid-19 pandemic leading to significant financial stress for customers across the board, the Resolution plan was offered by RBI.
• It was offered to the affected customers having good repayment track record and who were eligible as per BFL’s Policy.
• Purpose of the resolution plan was to assist customers in reducing the resultant stress which may potentially impact the long-term viability of the business due to the debt burden becoming disproportionate relative to their cash flow generation abilities. The assistance to the customers under Resolution plan was by reducing loan EMI amount & extending tenure of loan.
• The resolution plan could be availed by eligible corporates without change in ownership and personal loans, subject to specified conditions.
• The resolution plan was offered to eligible customers subject to acceptance & adherence of the terms and conditions/documentation governing the same.
Is Bajaj Finance Ltd (“BFL”) offering Resolution Plan to its customers?
No. As per the RBI guidelines on Resolution Framework for COVID-19-related Stress, announced by the RBI dated August 6 2020, this was a one-time resolution plan offered to customers for availing the benefits and has ended on 31st December 2020.
Will the resolution plan be applicable in case of new loans sanctioned after Feb,29, 2020 during the lockdown period?
No. As per the RBI guidelines, only those accounts were eligible for resolution under this framework which were classified as ’Standard’ but not in default for more than 30 days with the lending institution as on March 1, 2020.
Will my Credit Bureau records be impacted if I have applied for implementation of resolution plan?
• If you have availed resolution plan, your credit bureau records have been updated with the details of resolution plan.
The fact that you have availed assistance under Resolution plan is appearing in your Bureau reports. However, BFL has no role as to how other Banks/Financial institutions may consider the same, since the Credit Policy of each entity may vary.
Was there a communication sent if my request for Resolution Plan was accepted?
• If you had applied for the resolution plan you would have received communication on your registered mobile number. You can also check the status here <https://customer-login.bajajfinserv.in/Customer?Source=raiserequest> by visiting our customer Portal Experia and refer your revised re-payment schedule for existing or new loan booked under the plan.
What is the interest rate that I will have to pay additionally in case of Resolution Plan?
• For Consumer Durable loans, there was a 1% charge per month for each loan. The amount so charged represents approx. 24% annualized rate of interest for the extended tenor under revised payment plan (Resolution Plan). Interest charges for Personal loan, Business loan and Professional loans remained the same.
Can I opt-out from Resolution Plan once applied for?
• No. Once you have opted for Resolution Plan implementation for your loans basis the offers opted, you may not be able to opt-out of the same.
Will there be any additional charges for making part-prepayment or foreclosing the revised loan under Resolution Plan?
• For Personal Loans and Business and Professional loans, charges may be applicable for Part Payment or Foreclosure basis Terms and Conditions of existing loans.
• For Consumer Durable loans there are no charges for Part Payment or Foreclosure (CD loans converted into PL- RMPL, there are no foreclosure charges applicable)
What would be the lock in period for Foreclosure and Part Pre-payment in case of loans under Resolution Plan?
• Foreclosure of Remedial PL is not permitted unless upon completion of at least one (1) EMI cycle and the customer should have promptly paid such EMI.
• The lock in period for foreclosure and Part Pre-payment in other Resolution Plans were governed by the loan documents signed/accepted by customer for initial loan(s).
Can I pay advance EMIs or Part Pre-payment for such loans?
• Resolution Plan was enabled for your convenience due to the temporary disruption caused on account of the Covid-19 pandemic. However, you have an option to make any advance EMI payment or part pre-payment as per existing terms of loan.
What would be the maximum tenure for Moratorium under Resolution Plan?
• For Personal, Consumer and Other loans Up to 24 months at sole discretion of the company.
Whether my EMI will start immediately after implementation of Resolution Plan or there would be some moratorium period after Resolution Plan?
• Your EMI will start immediately after implementation of Resolution Plan unless extension of Moratorium is approved for you as per Resolution Plan.
In case, my previous loans are getting covered under Resolution Plan, can I apply for new loan?
• This will depend on future offers being generated for you basis BFL’s internal risk policy from time to time.
What will be the treatment for loans under Resolution Plan during presentation of EMI of existing loan (CIP)?
• This will be managed in the same way as per the current loan process. In case of any excess EMI debited for old loan due to clearance post new loan booking, the same will be adjusted against the new loan.
Will my EMI card get blocked if I opted for a Resolution Plan offer?
• In case you opt for Implementation of Resolution Plan, your EMI card will be blocked. The unblocking of the same will be done basis your repayment of loan over the next few months.
Is it applicable for all products with Bajaj Finance Limited (BFL) including RBL Bank and Bajaj Finance Limited Co-Branded Credit Card?
• This is applicable only for existing loans with BFL excluding loans against FD, Gold Loan and outstanding on co-branded Credit cards. For the sake of clarity, Resolution Plan will NOT apply to RBL Bank and BFL Co-branded Credit Card.
What is the invocation of the resolution plan?
Resolution plan 2.0 aims to restructure existing MSME or retail loan. The restructuring of debt may include one of these actions:
• Extension of repayment tenor
• Reduction in interest rate
• Reduction in outstanding loan principal amount
• Addition of previous outstanding amount to existing loan account
That said, invocation of resolution plan could simplify the formal act of raising a request or forwarding a plea to restructure existing loan.
What is the maximum period of moratorium under the resolution framework?
Individuals can avail moratorium under the resolution framework if they deem it essential. However, the maximum period of moratorium allowed under the resolution framework is 24 months. Note that the interest will be capitalized under the said plan during the period and will be subsequently added to the principal amount.
What is the last date to which customers can avail of resolution plan 2.0?
As per the available information, the last date customers can avail resolution under the said framework is 30th September 2021. Note that the date of invocation for personal loans can be explained as when the concerned individual and the lender have agreed to move ahead with a resolution plan 2.0 under the current framework.