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Overdue - Notice - 06032020 UBI

The document is a letter from Union Bank informing the customer that their loan account is overdue and in the SMA category according to RBI guidelines, which means a 2% penal interest is being charged and their credit score is being negatively impacted; the letter requests that the customer clear the entire overdue amount as soon as possible to return the account to regular status and avoid further penalties and credit issues.

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Mahesh J. Uma
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1K views

Overdue - Notice - 06032020 UBI

The document is a letter from Union Bank informing the customer that their loan account is overdue and in the SMA category according to RBI guidelines, which means a 2% penal interest is being charged and their credit score is being negatively impacted; the letter requests that the customer clear the entire overdue amount as soon as possible to return the account to regular status and avoid further penalties and credit issues.

Uploaded by

Mahesh J. Uma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CREDIT MONITORING AND RESTRUCTURING DEPARTMENT

UNION BANK BHAWAN, 239, VIDHAN BHAWAN MARG, NARIMAN POINT,


MUMBAI -400021
DATE: 06/03/2020

Sir/Madam,

Adjustment of Overdues in your loan account

We are privileged to have you as our valued customer.

We draw your kind attention to extant RBI guidelines, wherein delay for even one day in payment of
installment/interest is required to be treated as loan default and banks are required to take
necessary steps to resolve the default by undertaking measures for recovery of dues.

As per the prudential norms of asset recognition, the assets under stress are classified as follows: -

SMA Sub- Basis for classification- Principal or interest payment or any other
categories amount wholly or partly overdue between
SMA-0 1-30 days (From Due Date)
SMA-1 31-60 days (From Due Date)
SMA-2 61-90 days (From Due Date)
NPA Beyond 90 days (From Due Date)

Once a loan account is classified as NPA, Bank is required to initiate recovery measures and report
default to credit bureaus, which will lead to adverse bearing on the credit standing of borrower.

Presently your accounts is under SMA Category and being in stress category, please note that your
A/c is charged with 2% penal interest since the due date of installments and / or interest. Further, as
per norms/regulations such overdue is also impacting your credit score which would restrict your
future opportunity of availing loans from lenders.

Please ensure that your account is regular and performing. We request you to clear the entire
overdue with the bank at the earliest.

We look forward to your immediate response.

Thanking you,

Yours faithfully,

Note: This is a system generated letter so need not to be signed. If overdue amount is already paid
please ignore this letter

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