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Ref.No.RFC/FRPolicy-85/1085��������� ����������� Dated : 11/12.7.06

CIRCULAR

(FR No.393)

Reg� :� Scheme for Settlement of Small Loan Cases/Transport Loan cases

Attention is invited to FR Circular No.378 dated 23.3.2006 and FR Circular No.391 dated 13.6.2006 thereby�� Schemes for Settlement of Small Loan Cases

 having sanctioned amount upto Rs.2.00 lac were issued.� Attention is also invited to FR Circular No.392 dated 28.06.06, thereby Scheme for Settlement of Transport Loan Cases having sanctioned amount above Rs.2.00 lac was issued. A reference has been received from one of the branch offices whether �upfront amount equivalent to 15% of principal sum alongwith other money in full� should be obtained. Further, queries have also been made whether deferred sale cases are eligible under the schemes.

�Though the provisions contained in the schemes referred to above, are amply clear, the following clarifications are issued :-

  1. Upfront amount equivalent to 15% of (principal sum plus other money) on the date of registration should be obtained. Meaning thereby, 15% of other money, if any, is to be included in the upfront amount.
  2. There is no restrictive clause for registration of deferred sale cases under the schemes, if these are otherwise eligible.
  3. Branch Manager while conveying decision to party for deposition of settlement amount shall specifically mention the quantum of upfront amount which has been adjusted against the settlement amount.