Moratorium and RBI
Moratorium On Loans One Time restructuring of loans What is the difference between moratorium and the restructuring. Restructuring or rephrasing of a loan is a different nomenclature used to the moratorium of instalments and interest with a slight difference. In other words, the subjects are not in a position to adhere to the schedule of repayment due to happening of some eventualities not expected and probably not insulated in assessing the proposal. In this case, it should not be included eventualities like pandemic situations or wars or earthquake. Otherwise, the assessment of profit generation or cash flow might have gone wrong and that is why the borrower struggles to adhere to the schedule of repayment. The subjects might have projected very much ambitious sales projections without taking into account the capacity in all respects says the machine, labour etc. Though it had been projected, it has been accepted by the credit processing officer, without any influence or pressure fr