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Frequently Asked Questions (FAQs)

RBI vide its circular no. DOR. No. BP. BC./3/21.04.048/2020-21 dated August 6, 2020, has provided a Framework for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for borrower(s).

 

This Framework has been provided with the intent to facilitate revival of real sector activities and mitigate the impact on the ultimate borrowers. The resolution under this facility is to be extended only to borrowers having stress on account of COVID-19.

 

On the basis of this framework and regulatory guidelines, the Bank has framed its policy for the restructuring of the loan(s) / facility (ies) of individuals and entities which have been impacted due to the pandemic.

 

We hope this Resolution Framework provides relief to you in these challenging times and you can continue to focus on your family and your health.

 

Please check below the detailed information on the offering:

A. RESOLUTION OF STRESS IN PERSONAL LOANS

Personal Loan(s) given to individual borrower(s) are covered under this Framework. Personal Loan(s) will include only those loan(s), which are sanctioned for the purpose of individual/ personal consumption and not for business or commercial purpose.

Axis Bank, will cover the following loans under the Resolution Framework:

  1. Credit Card receivables
  2. Auto Loans (other than loans for commercial use)
  3. Personal Loans secured by gold, gold jewellery, immovable property, fixed deposits (including FCNR(B)), shares and bonds, etc., (other than for business / commercial purposes)
  4. Personal Loans to professionals (excluding loans for business purposes)
  5. Loans given for other consumption purposes (e.g., social ceremonies, etc.)
  6. Education Loans
  7. Loans given for creation/ enhancement of immovable assets (e.g., housing loans)
  8. Loans given for investment in financial assets

However, credit facilities provided to own personnel/staff shall not be eligible for resolution under this framework.

 

No. Eligibility criteria to be fulfilled under the Framework:

  1. All borrower accounts who are not in default for more than 30 days with the Bank as on March 1, 2020 and classified as Standard Assets (across all Loans / Credit facilities/ Credit Cards till date) are eligible for restructuring. 
  2. Borrower(s) who is / are experiencing financial stress on account of pandemic. There has to be a clear evidence of the borrower’s business or source of funds or income being directly impacted by COVID-19. Below are a few illustrative examples:
    • Job Loss or salary reduction or variation in cash flows or variation in income for self or family members.
    • Difficulties in making payment due to emergency expenses or medical expenses incurred for self or family members.
    • Construction progress of the property being purchased is delayed and hence borrowers’ cash flows are impacted.
    • Borrower(s) is/are suffering on account of continued lockdown or is operating / residing in a containment zone or is working for an industry which is impacted by COVID-19.
  3. The reduction of income and its financial impact on the borrower(s) will be reviewed by the Bank basis the documents submitted and information provided. The Bank will also assess the ability of the borrower to pay the restructured EMIs before restructuring the loan facility.

In case the loan is eligible & meeting the above criteria, to apply, please visit the nearest Loan Center with requisite documentation.

For Salaried Customers : To download the application/request letter and document list, click here

For Self-Employed Customers : To download the application/request letter and document list, click here

In case of Credit Cards, you may visit the Bank’s website, access the link to fill in the declaration form and submit the relevant details. The link will be updated shortly on the Bank’s website.

 

Yes. For loans, you are required to submit following documents along with the application / request letter.

In case of salaried borrower(s):

  • KYC documents of borrower(s) and guarantor(s) (Voter ID, Passport, Driving License, UID)
  • Bank statements for last 12 months for all loan applicants
  • Salary slips for latest 6 months with banking reflection
  • Latest 2 years IT returns and Form 16 for latest year/ Form 26 AS for FY.19-20 and F.Y. 20-21 till date
  • In case of Job Loss/ salary cut / deferment – Letter from employer about termination of employment/ salary reduction/ deferment

In case of self-employed borrower(s):

  • KYC documents of borrower(s) and guarantor(s) & Beneficial Owners (BO)
    For Individual borrowers - Voter ID, Passport, Driving License, UID
    For non-individual entities - KYC documents as per Bank’s policy basis nature of entity. MSME certificate (wherever applicable)
  • Business bank statements for last 12 months for all applicants (along with promoters/ co-app/ BO personal bank statements)
  • GST returns for F.Y 2019-20 and from April 20 till date/ Form 26AS - F.Y 2019-20 and F.Y 2020-21 (YTD)
  • Audited financials along with ITRs for F.Y. 19 and CA certified Provisional / Audited financials F.Y 2019-20. [For business entity, promoters and B.O.] Projected financials for F.Y. 20-21 & 21-22 and documents in support of the same.
  • In case of remuneration/salary / share of profit from partnership/ LLP/ other firms, financial statements of these firms for FY18-19 & 19-20 with GST returns for F.Y. 20-21 (YTD).
  • Board Resolution for applying for restructuring (wherever applicable)
  • Note:

    • If co-borrower(s) is/are financial borrower(s) then all the above documentation will be required from co-borrower(s) as well.
    • Bank may ask for any other document / information relating to cash flows, moratorium or obligation.
    • All the above documents should be self-attested.

    For restructuring of credit card outstanding, you are required to visit the Bank’s website, access the link to fill in the declaration form and submit the relevant details. The link for application will be updated shortly.

    The last date for application is December 20, 2020.
    No, only those accounts that were live in Bank’s books as on March 1, 2020, not in default for more than 30 days as on March 1, 2020 and are classified as Standard Assets (across all loans / facilities / credit cards till date) are eligible for restructuring.

    The following options may be offered to the borrower(s) subject to Bank’s discretion:

    • For Term Loans: Rescheduling of payments i.e., the balance tenure of the loan can be extended by a further period of maximum 24 months to ease your monthly EMI repayment burden or rebooking of loan (closure of existing loan and creation of new loan), subject to a maximum increase in loan tenure by two years.
    • For Overdraft (OD) facility (ies): Conversion of any interest accrued, or to be accrued, into another credit facility subject to a maximum tenure of 24 months.
    • Granting of Moratorium for a maximum period of 24 months. The Moratorium Period, if granted, shall come into force immediately upon implementation of the resolution plan.
    • For Credit Card outstanding, options will be made available to convert it into instalments with tenure not exceeding 24 months.

    As per RBI guidelines, the credit reporting by the lending institutions in respect of borrowers where the resolution plan is implemented under this facility shall reflect the “restructured” status.

    The credit history of the borrowers shall consequently be governed by the respective policies of the credit information companies as applicable to accounts that are restructured.

    The Bank may levy a one-time fee/ charge to restructure your loan/ credit card outstanding.
    The application form / request letter for restructuring of loans shall have the option to apply for one or all the loans / facility (ies) in a single application. The Bank shall appraise your application in accordance with the regulatory guidelines and assess the viability of the repayment plan of all your loans before taking a decision on the same. The Bank reserves the right to offer a restructuring plan at its sole discretion.
    Only those accounts that were live in Bank’s books as on March 1, 2020, not in default for more than 30 days as on March 1, 2020 and are classified as Standard Assets (across all Loans / Facilities / Credit Cards till date) are eligible for restructuring.
    Restructuring options will be available for the entire Credit Card outstanding inclusive of EMI plans wherever applicable. Standing Instructions (if any) will continue.
    The credit facility extended on the Credit Card account shall stand deactivated and the Credit Card would be inactive for usage (if not already deactivated). However, the credit facility may be reactivated post continuous regular payments and at the sole discretion of the Bank.
    The minimum outstanding balance requirement for Loans/ Credit Cards is Rs. 50,000/-.
    Yes, all borrowers /co-borrower(s)/ guarantor(s) of the original loan need to accept and sign on any changes associated with the loan structure.
    No. Only in case your loan is rebooked, you will have to submit the Direct Debit / Standing Instruction (SI) mandate again.
    Yes, additional security may have to be furnished in case relief under the Framework is sanctioned. It will be at Bank’s own discretion and on a case to case basis.
    The Bank will endeavor to process your request within 15 working days of submitting the application along with complete set of documents prescribed by the Bank for restructuring.
    No. It will continue as per the existing Terms and Conditions of your Loan agreement with the Bank.
    MSME borrowers whose aggregate exposure, including non-fund based facilities, of banks and NBFCs does not exceed ₹ 25 Crore as on March 1, 2020 shall not be eligible for a resolution plan under this Framework. They shall be eligible under ‘Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances’ guidelines issued by RBI on August 6, 2020.

    The following categories of borrower(s)/ credit facility (ies) shall not be eligible:

    • MSME borrowers whose aggregate exposure to lending institutions collectively, is ₹ 25 Crore or less as on March 1, 2020. (Covered under separate scheme of RBI)
    • Farm credit
    • Loans to Primary Agricultural Credit Societies (PACS), Farmers' Service Societies (FSS) and Large-sized Adivasi Multi- Purpose Societies (LAMPS) for on-lending to agriculture.
    • Exposures to financial service providers
    • Exposures to Central and State Governments, Local Government bodies (e.g., Municipal Corporations) and body corporates established by an Act of Parliament or State Legislature
    • Axis Bank employees
    • Consumption loans to farmers under KCC
    • NPA loans as on March 1, 2020
    • Loans with a DPD status of more than 30 days as at March 1, 2020
    • Accounts having financial stress for reasons other than COVID-19

    B. OTHER THAN PERSONAL SEGMENT LOANS (Other Exposures)

    The purpose of this Framework is to provide relief to units, who otherwise have a good track record, but whose operations have been adversely affected due to financial stress caused by the COVID-19 pandemic.

    To be eligible under the Framework, the following eligibility conditions need to be fulfilled:

    Your loan should be a “Standard Account” as on date of application and should have been ‘Standard’ and also not in default for more than 30 days as on 01.03.2020. The account should continue to be classified as Standard till the date of invocation of resolution under this Framework.

    Your unit’s operations should have been affected by COVID-19 and you are unable to service your loan instalments/ debt regularly.

      The following categories of borrower(s)/ credit facility (ies) shall not be eligible:

    • MSME borrowers whose aggregate exposure to lending institutions collectively, is ₹ 25 Crore or less as on March 1, 2020. (Covered under separate scheme of RBI)
    • Farm credit
    • Loans to Primary Agricultural Credit Societies (PACS), Farmers' Service Societies (FSS) and Large-sized Adivasi Multi- Purpose Societies (LAMPS) for on-lending to agriculture.
    • Exposures to financial service providers.
    • Exposures to Central and State Governments, Local Government bodies (e.g., Municipal Corporations) and body corporates established by an Act of Parliament or State Legislature
    • Axis Bank employees
    • Consumption loans to farmers under KCC
    • NPA loans as on March 1, 2020
    • Loans with a DPD status of more than 30 days as at March 1, 2020
    • Accounts having financial stress for reasons other than COVID-19
    You may submit your request at the Loan Centre where your account is maintained or alternatively contact your Relationship Manager.

    The Resolution Plan is to be implemented within 180 days from the date of invocation.

    For borrowers having all exposures with Axis Bank - The date of invocation shall be the date on which both the borrower and Axis Bank agree to proceed with a Resolution Plan under this Framework. Accordingly, the date of invocation will be the date on which the Resolution Plan proposed by the Bank is accepted by the borrower as well.

    For borrowers having multiple exposures - The resolution process shall be treated as invoked if lending institutions representing 75 per cent by value of the total outstanding credit facilities (fund based as well non-fund based), and not less than 60 per cent of lending institutions by number agree to invoke the same.