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Poultry Unit Owners Get Relief

by 5m Editor
29 February 2008, at 9:39am

INDIA - The Reserve Bank of India has directed the banks to extend the time limit on loan repayment, for borrowers owning poultry units, by the end of April.

The decision was taken to provide some relief to the poultry industry, which has been badly hit by bird flu in some states. Along with West Bengal, which is, one of the worst affected, preventive measures are also being taken in neighbouring states of Bihar, Jharkand, Assam and Orissa.

RBI has asked the banks to convert the principal and interest on working capital loans into term loans and also convert the installments and interest on term loans further into term loans.

The banks have been directed to reschedule the repayment of both working capital loans and term loans in installments after assessing the income generating capacity of the borrower’s poultry unit over the next three years. The banks have been asked to fix the first year of repayment after a gap of atleast one year, giving time to the borrowers to recover from their losses.

Source: RupeeTimes

5m Editor