The Kerala Financial Corporation (KFC) will conduct a loan settlement adalat in the last week of September.
The one-time settlement adalat is meant to help entrepreneurs who are finding it difficult to meet loan repayment commitments due to the second wave of COVID-19. Loans classified as non-performing asset as on June 30, 2021, are included in the adalat.
Applications
Applications for settlement under the scheme can be submitted from August 24. Customers should remit 1% of the outstanding principal amount as advance along with the application.
“The KFC has already extended moratorium to its customers and has initiated remedial measures like loan restructuring and interest rate reduction. Yet, we are receiving requests for settlement under one-time remittance,” KFC chairman and managing director Sanjay Kaul said.
Special panel
To ensure transparency in settlement procedures, a special committee headed by a retired judge will oversee the adalat proceedings. The settlement will be finalised at a mutually agreeable amount considering factors such as repayment till date, security and the loan category.
The customers will have time up to December 31, 2021, to remit the settlement amount fixed at the adalat.
