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Frequently Asked Questions (FAQs)

 

RBI vide its circular no. RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22 dated 5th May, 2021, has announced certain set of measures and provided a window to enable the lending institutions to implement a resolution plan in respect of the credit exposure of individual borrowers and small businesses with the objective of alleviating the potential stress on account of resurgence of the COVID-19 pandemic.

 

The resolution plan under this facility is to be extended only to borrower(s) impacted and having stress on account of COVID-19.

 

Based on this framework and regulatory guidelines issued, the Bank has framed its policy (Framework) for implementing the resolution plan in respect of credit exposure of individuals and small businesses having stress on account of the COVID-19 pandemic.


Click here for Board Note and Guidelines - Resolution Framework 2.0


Click here for Terms and Conditions - Resolution Framework 2.0


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Please find detailed information on the offering as below:

The following borrower(s) shall be eligible for a resolution plan under this policy:

Individuals who have availed of personal loans (as defined in the Circular DBR.No.BP.BC.99/08.13.100/2017-18 dated 4th January, 2018, on “XBRL Returns – Harmonization of Banking Statistics”). However, credit facilities provided to own personnel / staff shall not be eligible.

  1. Personal loans refer to loans given to individuals and consist of:
  2.  
    • Loans taken to purchase consumer durables
    • Credit card receivables
    • Auto loans taken (other than loans for commercial use)
    • Personal loans secured by gold, gold jewellery, immovable property, fixed deposits (including FCNR(B)), shares and bonds, etc. (other than loans provided for business / commercial purposes)
    • Personal loans to professionals (excluding loans for business purposes)
    • Loans given for other consumption purposes (e.g., social ceremonies, etc.)
    • Education loan
    • Loans given for creation / enhancement of immovable assets (e.g., housing, etc.), and
    • Loans given for investment in financial assets (shares, debentures, etc.)

    Please note: Personal Loans will include only those loans, which are sanctioned for the purpose of Individual/ Personal consumption and not for business or commercial purpose.

  3. Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than INR 50 crore as on 31st March, 2021.
  4.  
  5. Small businesses, including those engaged in retail and wholesale trade, other than those classified as micro, small and medium enterprises as on 31st March, 2021, and to whom the lending institutions have aggregate exposure of not more than INR 50 crore as on 31st March, 2021.

No. Some of key eligibility criteria which need to be fulfilled under the framework are:

  1. All borrower account(s) (across all Loans / Credit facilities/ Credit Cards till date) classified as Standard Asset / Non-NPA as of 31st March, 2021.
  2.  
  3. Borrower(s) who is / are experiencing financial stress on account of COVID-19. There must be a clear indication of the borrower’s business or source of funds or income being directly impacted by COVID-19, if asked by the bank. Below are a few illustrative examples:
  4.  
    • Job loss or salary reduction or variation in cash flows or variation in income for self or family member(s).
    • Self-employed 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.
    • Difficulties in making payment due to emergency expenses or medical expenses incurred for self or family member(s) on account of COVID-19.
  5. The financial impact on the borrower(s) will be reviewed by the Bank basis the self-declaration / documents submitted / information provided. The Bank will also assess the ability of the borrower(s) to pay the restructured EMIs before restructuring the loan facility.

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

  • MSME borrower(s) whose aggregate exposure to lending institution(s) collectively, is INR 50 crore or less as on 31st March, 2021.
  • Farm credit as listed in Paragraph 6.1 of Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 dated 7th July, 2016 (as updated), except for loans to allied activities, viz., dairy, fishery, animal husbandry, poultry, beekeeping and sericulture.
  • Loans to Primary Agricultural Credit Society (ies) (PACS), Farmers' Service Society (ies) (FSS) and Large-sized Adivasi Multi- Purpose Society (ies) (LAMPS) for on-lending to agriculture.
  • Exposures of lending institution(s) to financial service provider(s). Financial Service Provider(s) shall have the same meaning as in sub-section (17) of Section 3 of the Insolvency & Bankruptcy Act, 2016.
  • Exposures of lending institution(s) to Central and State Governments; Local Government body (ies) (e.g. Municipal Corporations); and body corporate (s) established by an Act of Parliament or State Legislature.
  • Loan(s) sanctioned to Axis Bank employee(s).
  • Account(s) having financial stress for reasons other than COVID-19 Pandemic.
  • Borrower(s) already availed resolution under Resolution Framework 1.0 for a period of 24 months by way of moratorium and / or extension of residual tenor.
  • Compromise settlements are not permitted as a resolution plan for this purpose.

If you are eligible to apply for a resolution plan (as per the above listed criteria), you may apply via any of the options listed below:

Digital application – click here to apply.

In case you are unable to place request digitally, you may visit the nearest Axis Bank Loan Center with the below mentioned documents along with the Application form : (click on link for application form)

In case of Salaried

    Any one of the KYC documents below:*

  • Driving License
  • Passport
  • PAN card & Aadhaar
  • Latest 1-month salary slip
  • Bank statement of salary account for last 3 months

In case of Self Employed

    Any one of the KYC documents below:*

  • Driving License
  • Passport
  • PAN card & Aadhaar
  • ITR / GST Returns for FY 2020-21
  • Bank statement of primary operating account for last 6 months

*Please note:

  • The Bank reserves the right to ask for any other document / information which may be relevant for the purpose of offering a resolution plan under the Framework.
  • If co-borrower(s) & guarantor(s) is/are financial borrower(s,) then all the above documentation will be required from co-borrower(s) & guarantor(s) as well. All documents to be duly self-attested.
  • All the supporting documents as and when required must be duly self-attested.

You can connect with us via any of the channels listed below

  • Nearest Loan CenterClick here to find your nearest Loan Center
  • Phone BankingClick here for our Phone Banking numbers

You may click here to apply, fill the relevant details and submit the form digitally. Alternatively, you may visit the nearest Axis Bank Loan Center with the below mentioned documents along with the Application form :  (click on link for application form)

In case of Salaried

    Any one of the below KYC documents:*

  • Driving License
  • Passport
  • PAN card & Aadhaar
  • Latest 1-month salary slip
  • Bank statement of salary account for last 3 months

In case of Self Employed

    Any one of the below KYC documents:*

  • Driving License
  • Passport
  • PAN card & Aadhaar
  • ITR/GST Returns for FY 2020-21
  • Bank statement of primary operating account for last 6 months

*Please note:

  • The Bank reserves the right to ask for any other document / information which may be relevant for the purpose of offering a resolution plan under the Framework
  • If co-borrower(s) & guarantor(s) is/are financial borrower(s) then all the above documentation will be required from co-borrower(s) & guarantor(s) as well. All documents to be duly self-attested.
  • All the supporting documents as and when required must be duly self-attested.

Once the Application has been approved / sanctioned, you will have to visit the nearest loan center / customer service desk to sign the Amendment agreement and submit the same to the Bank in original.

    Please note:

  • Resolution plan approved shall be processed subject to the submission of signed Loan agreement by customer
  • In case there are two or more applicants on the loan structure, then all applicants including guarantors will be required to accept the terms by putting physical signatures on Amendment agreement
The last date for application is 20th September, 2021. In order to ensure that the Bank meets the date of invocation of 30th September, 2021, the application request and related documents (if any) need to be submitted by the customer by 20th September, 2021 for the Bank to process the request.
No, only those account(s) that were live in the Bank’s books as on 31st March, 2021 and are classified as Standard Assets (across all loans / facilities / Credit Cards) are eligible for restructuring.

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

  • Rescheduling of payments
  • Conversion of any interest accrued, or to be accrued, into another credit facility
  • Revisions in working capital sanctions
  • Granting of Moratorium
  • For Credit Card outstanding, options will be made available to convert the total outstanding dues into instalments

Note: The overall caps on moratorium and/or extension of residual tenor granted under Resolution Framework – 1.0 and this framework combined, shall be two years.

Subject to regulatory guidelines, your loan/credit facility (ies) will be reported to the credit bureau as “Restructured”.
The Bank shall not levy any charge / one-time fee to implement the resolution plan for your loan / credit card outstanding.

The application form for resolution plan in respect of the loans available shall have the option to apply for one or all the loan(s) / facility (ies) in a single application. The Bank shall appraise your application in accordance to the Framework guidelines before taking a decision on the same. The Bank reserves the right to offer a resolution plan at its sole discretion.

The options, in terms of the resolution plan under the Framework, will be available for the entire Credit Card outstanding inclusive of EMI plans, wherever applicable. Standing Instructions (if any) will continue.

No, you will not be able to use your Credit Card as 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.

Yes, all borrower(s) /co-borrower(s)/ guarantor(s) of the original loan need to accept and sign on any changes associated with the loan structure.
No. However, pursuant to the implementation of the resolution plan in respect of your loan Account(s), if there is any change in the EMI amount, then the Bank will request you to submit a Direct Debit / Standing Instruction (SI) mandate again.
Yes, you may be required to furnish some additional security, if any, which will be at the Bank’s own discretion and on a case to case basis.
The Bank will process your request within 30 working days from the date of submission of the application.
No. It will continue as per the existing Terms and Conditions of your Loan agreement with the Bank.

Yes, if it satisfies the below mentioned prescribed eligibility criteria:

  • Individuals who have availed of loans and advances for business purposes and to whom the Bank has aggregate exposure of not more than INR 50 crores as on 31st March, 2021.
  • Small businesses, including those engaged in retail and wholesale trade, other than those classified as micro, small and medium enterprises as on 31st March, 2021, and to whom the aggregate exposure across all lending institutions is not more than INR 50 crores as on 31st March, 2021.
  • Borrower(s) is / are experiencing financial stress on account of COVID-19 pandemic.

In case of loans of borrowers where resolution plan had been implemented in terms of the Resolution Framework – 1.0, and where the resolution plans had permitted no moratorium or moratorium of less than two years and / or extension of residual tenor by a period of less than two years, the said borrower(s) can apply for a resolution plan under the Framework subject only to the extent of increasing the period of moratorium / extension of residual tenor subject to the overall cap of 2 years. The overall cap on moratorium and/or extension of residual tenor granted under Resolution Framework -1.0 and Resolution framework - 2.0 combined, shall be two years.