THIRUVANANTHAPURAM: The Kerala Financial Corporation (KFC) has announced a one-time settlement adalat for loan defaulters. Loans classified as non-performing assets as on June 30, 2021, will be considered in the adalat to be held in September last week.
According to KFC, many of its customers are finding it difficult to keep up with their loan repayment commitments after the second spell of the pandemic. The adalat aims to give customers an option to settle their non-performing loans with sizeable benefits.
“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,” said Sanjay Kaul, chairman and managing director of KFC.
Applications for settlement under the scheme can be placed from August 24. Customers should remit an advance of 1 pc of outstanding principal along with the settlement application.To ensure transparency in settlement procedures, a special committee constituted under a retired judge will oversee the adalat.
The settlement will be done at a mutually agreeable amount arrived at after a discussion with the borrower and considering factors like repayment till date, security, loan category etc.Customers have to pay the settlement amount by December 31, 2021. There will be an additional 10 pc benefit for customers who remit the settlement amount by November 30.