15 December 2022
I have avail 2 term loan Rs 60 lakhs on 13.5% ROI and Rs 140 lakhs on 12% ROI and moratorium period for both loan is till Dec 2019 and till Mar 2019 they have released Rs 170 lakhs. Due to CAA movement and economic slowdown specially last quarter of 2019 I was unable to pay Rs. 14,15,398. Now from Jan 2020 EMI supposed to start but as they did not release my full amount and due to CAA, economic slowdown and COVID-19 my unit could not run and became NPA. In my sanction letter it is clearly written that 2% additional panel interest above normal interest rate, 1% loan processing fees and 3% pre-payment penalty charges. After repetitive request to restructure my MSME unit they rejected the proposal and the calculated Rs. 1,09,35,530 as Interest default till Sept 2022. As per calculation which I searched in online EMI calculator is supposed to be Rs 75,69,658 including interest default of Rs 14,15,398 during moratorium period and calculating Rs 60 lakhs @15.5% & Rs 110 Lakhs @ 14% with 2% additional penal interest including COVID-19 period and after NPA declaration. Kindly guide if this calculation is correct.
09 July 2024
Based on the details provided, let's break down the calculation and the issues involved:
1. **Loan Details:** - Term Loan 1: Rs 60 lakhs at 13.5% ROI - Term Loan 2: Rs 140 lakhs at 12% ROI - Moratorium Period: Till Dec 2019 (Interest accrued but EMIs not paid)
2. **Interest and Penalties:** - Additional Penal Interest: 2% above normal interest rate - Loan Processing Fees: 1% of the loan amount - Pre-payment Penalty: 3% on the outstanding principal
3. **Issues and Concerns:** - **Moratorium Period:** During the moratorium period, interest accrues on the disbursed amount but EMIs are not paid, leading to the interest default. - **Impact of Economic Factors (CAA, Economic Slowdown, COVID-19):** These factors can affect business operations and revenue generation, making it challenging to meet financial obligations, including loan repayments.
4. **Calculation:** - You've calculated the total liability including interest default till September 2022 as Rs. 1,09,35,530. - This includes the principal amounts of both loans and the accrued interest during and after the moratorium period, factoring in the penal interest and other charges mentioned.
5. **Validity of Calculation:** - The accuracy of the calculation depends on the specifics of your loan agreement, including the terms regarding additional penal interest, processing fees, and pre-payment penalties. - It's advisable to cross-check your calculations with the loan agreement terms and conditions provided by your lender to ensure accuracy.
**Next Steps:** - If your MSME unit has become NPA and restructuring proposals have been rejected, consider consulting with a financial advisor or a legal expert specializing in debt restructuring and MSME issues. - Evaluate options such as debt restructuring schemes provided by banks or financial institutions, if applicable under current regulatory frameworks. - Communicate with your lender to explore feasible repayment solutions or negotiations based on your current financial situation and challenges faced.
Given the complexity and specific details involved in your case, professional advice tailored to your situation would be beneficial to ensure the best course of action moving forward.
CAclubindia
