Hello and welcome back everyone! Your friend Prabhasini is
back and today, I am going to discuss, rather share – a solution in the form of
The OTS scheme enacted by bank for solving a tricky problem of NPA borrowers
which had plagued the banking industry for quite some time, and an exciting way
to earn some pocket money for students while doing some market research and
collaboration and learning a lot in this process. Read on to know more…
With Start-up India, increased foreign direct investment
into the Indian economy, digital transformation, enhanced options to expand
business beyond expected and known frontiers, advanced and liberal trade options
and laws, ‘doing business’ is what flows in the lifeline of New-age India. And on
the positive side of the story, business generates huge revenues, benefitting
not just the entrepreneur or company, it benefits the entire society as well
with a revolutionary vision, innovative lifestyles, employment opportunities, to
name a few. And, to ensure seamless operation of a variety of business
activities – ranging from market research about customers, suppliers,
intermediaries and distribution channels, obtaining raw materials for
production, engaging officers and labourers and employing an effective HR team
in order to identify the right personal, variety of MIS products,
advertisements and promotions, maintaining communication and PR avenues with the
external world, expansion activities, implementing strategic decisions, every
activity of business comes with a cost associated with it. Although the main
objective of any business enterprise remains minimising the costs and enhancing
revenue, and earning more and more revenue incurring least possible cost;
however, there are ‘costs’ which cannot be avoided and have to be met with. This
prompts enterprises to seek investment and capital – either from angel
investors, through stock market, loans from banks and other financial
institutions.
However, the environment in which business activities are
conducted never remain stable – they are highly dynamic. Often, even the
strongest players of the market succumb to the pressures of changing times and
collapse. With new laws, changing customer trends and preferences, economic
shifts – often several production houses either have laggard rate of production,
not even enough to cover their fixed costs or have to shut down, if
diversification renders impossible. But, a business unit simply doesn’t slow down
or shut down. It also leads it into severe financial distress. In case the
enterprise has borrowed from bank, repayment of loan becomes a difficult task. Especially,
when the instalment payments are defaulted over and over again, credit score of
the debtor organisation comes down, making it difficult for the organisation to
get further loans, and even if it does, it binds the enterprise into debt trap.
And finally, the borrower becomes NPA for the bank or financial institution.
This also ingrains frustration for the business owners. And,
since society in general, has a saw and opinion in everything done in our lives
– especially in a modified collective society as India, the concern about
facing the society and a tarnished reputation both in market and society
depresses the borrower further. So much so that people even lose all hopes of reviving.
Relax. When your friend Prabhasini is here, she has the good
news for everyone.
First for NPA borrowers – if your profile belongs to this category:
1.
Have loan in the category of Manufacturing,
Trade, Services and Agriculture sector
2.
Loan outstanding value is more than Rs 25 crores
& upto Rs. 50 crs
Then state bank of India has launched an OTS scheme known as
SBI SCHEME FOR ONE TIME SETTLEMENT OF
NPAs & AUCAs (SBI OTS II 2017) which would help resolve this issue
effectively.
Some salient features of this Scheme are:
i. This will be a non-discretionary and non-discriminatory
scheme.
ii. Last date of receipt of application: 15.02.2018
iii. Last date for conveying sanction: 28.02.2018
iv. The scheme will be applicable to Accounts under
Manufacturing, Trade, Services and Agriculture sector only. Accounts
classified as D3, Loss or AUCA as on 30.09.2017 and accounts turned NPA on or
before 30.09.2013. NPAs / AUCAs with outstanding of above Rs.25 crores &
up to Rs.50 crores as on 30.09.2017.
v. Waiver of notional interest from date of NPA in respect
of all eligible accounts. However, in case of restructured accounts the
outstandings in FITL & WCTL shall not be waived.
vi. Concessions will be given as under:
All legal and other expenses shall be waived. 30% waiver
will be given on the secured portion of the Outstandings (i.e. outstanding
equivalent to the value of primary and collateral security) 50% waiver will
be given on the unsecured portion of the Outstandings (i.e. outstanding in
excess of the value of primary and collateral security)
vii. 100% margin shall be taken as TDR in case of any LC/BG
outstanding and it shall be released after the expiry of LC / BG or adjusted
against devolvement / invocation as the case may be.
Further, to incentivize faster payments, additional
incentive of 10% discount on OTS amount arrived at as per the settlement
formula, would be allowed to those borrowers who make full payment on or before
31.03.2018.
In order to seek benefit of this scheme and know more about
it in details – please contact your nearest SBI branch for the settlement form.
Or, in case you do not feel confident enough to approach the bank yourself and would
wish someone to negotiate with the bank on your behalf, please contact the details
below expressing your interest for resolution –
Pranjita Chakraborty
Email id – pranjitac@gmail.com
Mobile - 8582898739
This way, you can wipe off your financial distress in an effective
manner and restart your life and enterprise and get rid of all frustrations
circumventing your lives.
And now for the students – If you know anyone or find out
NPA borrowers in your area compliant with the sectors applicable with this
scheme, please report within a reasonable time – considering the deadline as
mentioned in the above paragraphs, either to the bank with the full report of
the borrowers and negotiate your reward with either party. Or, if you do not
feel confident enough to approach the bank yourself and would wish someone to
negotiate with the bank and / or the borrower about your reward / recognition, please
send an email to –
in this format –
Name and location of the organisation –
Contact details of the NPA borrower or the company – mobile number
Sector of loan-
Loan amount –
During negotiation / settlement,
your reward would be negotiated for the same on a case to case basis. This way,
you could earn pocket money, may be lots of pocket money to spend over the
weekend or upcoming Valentine’s day. And, in this process, you could learn a
lot about market research and identifying targets, debt recovery and
collaboration.
Get started and for the NPA
borrowers – keep the date of 15th February in mind, send in your
proposals and get relived of your loan tension forever; and for students – grab
this opportunity to earn some bucks.
If anyone who might not be a student, but still, wishes to
report about NPA borrowers he / she might know, are also welcome.
Stay tuned for more. You may connect with me on twitter
@PranWin or send in emails to – aamiprabhasini@gmail.com
Till the next – stay healthy, happy and safe. See you soon.
Comments
Post a Comment