Process of Re-Structuring of Bank Loans (MSME/Mid-Corporate/Corporate Loans)

Rao focuses on the process of re-structuring of bank loans. Survey Reports have shown that disruptions caused by the Covid-19 Pandemic have impacted MSMEs' earnings by 20-50%, Micro and Small Enterprises faced the maximum heat, mainly due to liquidity crunch. Enterprises dealing in essential commodities business were better off in terms of interrupted but predictable cash flows. Some enterprises innovated their ways by shifting the focus from non-essential commodities to essential commodities like production of hand sanitizer and toiletries, PPE kits, reusable masks, etc. and are able to survive in tough times. The purpose of restructuring a loan is to accommodate the borrower who is in financial difficulties and unable to repay the loan as per the agreed repayment schedule. Restructuring of loans involve modification of the terms and conditions of the loan usually with a longer period for repayment with lesser amount of installments to avoid defaults.