Additional Schedule cum Key Fact Statement This additional Schedule / Key fact statement shall be in addition to and not in derogation of the commercials covered in the existing Schedule / Key fact statement of the loan agreement and that the details incorporated in this additional Schedule / Key fact statement shall be deemed to be part of the loan agreement dated and are deemed to be replicated in the said loan agreement, Principal & Interest Break Up “Total Amount to be Paid *Principal Loan Amount “interest * Amount will be subject to change depending on change in interest rate due to external benchmark on date of disbursement. Bank will send repayment schedu customer within 7 days from date of disbursement. to EMI start date post completion of Principal and/or Interest Moratorium, where applicab! EMI Start Date ‘SMA fdue date of a loan account is March 37, 2021, and full dues are not received before the lending institution runs the day-end process for this date, the date of \ overdue shall be March 31, 2021. If it continues to remain overdue, then this account shall get tagged as SMA-1 upon running day-end process on April 30, 2021 i.e. upon completion of 30 days of being continuously overdue. ‘Accordingly, the date of SMA-1 classification for that account shall be April 30, 2021 ‘Concepts / Clarifications / Illustrative examples Dues: mean, the principal/interesv any charges levied on the loan account which are payable within the period stipulated as per the terms of sanction of the credit facility. Overdue: mean. the principal / interes/ any charges levied on the loan account which are payable .but have not been paid within the period stipulated as per the terms of sanetion of the credit facility. In other words, any amount due to the bank under any credit facility is ‘overdue’ if itis not paid on the due date fixed by the bank. Relevance of the Principle of 'First In First Out' (FIFO) in appropriation of payments into the borrowal account: The Principle of FIFO i.e., ‘First In, First Out’ accounting method is relevant to arrive at the No.of days of overdue for determining the SMA / NPA status. The FIFO principle assumes that, the oldest ‘outstanding dues in the loan account needs to be cleared first .The FIFO method thus requires that what is due first must be paid by the borrower first. For example; if in any loan account as on 01.02.2021 there are no overdues and an amount of Rs. X is due for payment towards principal instalment/interest/charges , any payment being credited on or after (01.02.2021 in the loan account will be used to payoff the dues outstanding on 01.02.2021 Assuming that nothing is paid Jor there is partial payment (Rs Y) of dues during the month of February, the overdue as on 01.03.2021 will be Rs .X-Y. Additionally, an amount of Rs.Z becomes due as on 01.03.2021, Now any payment | partial paymentinfo the account on or afer 01.03.2021 will be first utilized to payoff the partial due of 01.02.2021 (Rs X - Rs.Y) If there is more recovery than the Ris X - Rs Y. then. After recovering dues of 01.02.2021, the remaining amount will be treated as recovery towards due of 01.03.2021 ‘Age of oldest Dues: The age of oldest dues is reckoned in days from the date on which the oldest payment is due and continues to remain unpaid In the aforesaid illustration, if the Dues relating to 1" February 2021 remain unpaid till 01.03.2021, the age of the oldest dues is reckoned as 29 days on 02.03.2021 Classification as Special Mention Account (SMA) and Non-Performing Asset (NPA) Lending institutions will recognize the incipient stress in loan accounts, immediately on Default,by classifying them as Special Mention Accounts (SMA) The basis of classification of SMA / NPA Category shall be as follows: Loan in the nature of Term Loans Loans in the nature of cash credit / over draft SMA __| Basis for classification — ‘SMA __| Basis for classification - Outstanding Sub- Principal or interest payment | Sub- __| balance remains continuously in categori | of any other amount wholly or | categori | excess of the sanctioned limit or es partly overdue a drawing power, whichever is lower, for a period of SMA-0 | Upto 30 days ‘SMA-1 | More than 30 days and upto | SMA-1 | More than 30 days and upto 60 days 60 days ‘SMA-2_| More than 60 days and | SMA-2_| More than 60 days and upto 90 upto 90 days days The asset classification norms of Agricultural advances which are based on Crop Season shall continue as hitherto. Non-performing Asset: Non-Performing Asset (NPA) is a loan or an advance where: i. interest andi or instalment of principal remains overdue for a period of more than 90 days in respect of a term loan, ii, the account remains ‘out of order’ as indicated below, in respect of an Overdraft/Cash Credit (op/cc), ii, the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted, iv. the instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops, v. the instalment of principal or interest thereon remains overdue for one crop season for long duration crops. ‘Out of Order’ Status: ‘An account shall be treated as ‘out of order if: i. the outstanding balance in the CC/OD account remains continuously in excess of the sanctioned limitvdrawing power for 90 days, or i the outstanding balance in the CC/OD account is less than the sanctioned limit/drawing power but there are no credits continuously for 90 days, or the.outstanding balance in the CC/OD account is Tess than the sanctioned limit/drawing power but credits are not enough to cover the interest debited during the previous 90 days period. Mlustrative movement of an account to SMA category to NPA category based on delay / nonpayment of dues and subsequent upgra lation to Standard category at day end process: Due date of payment Payment Date Payment covers Age of oldes: t dues SWATNPA Categorisation ‘SMA since 7SMa class date NPA ccategorizatio " WPA Date 7.07 2022 O107.202 2 Entre dues upio 01.01.2022 NIL a NA 1.02205 2 (07.02.202 Z Parly paid dues of 01.02.2022. SWAD 07.02.2028 NA 07.02.2082 2 (02.02.202 2 Party paid dues of 01.02.2022 ‘SWAO 07.02.2022 NA O708202 2 Dues of 01.02.2022 not fully paid 01.03.2022 is also due at EOD 01.03.2022 SWAD O7.02.2022 NA 3] S| =| FI Dues of 01.02.2022 fully paid, Due for 01.08.2022 not paid at EOD 01.03.2022 SWAD Dros a02a WA z No payment of full dues of OF (92.2022 AND 01.08.2022 at EOD 03.03.2022 a SWAT O03. BOE } 03.03.2022 NA NA Dues of 01.02.2022 fully paid, Due for 101,03.2022 not fully paid at EOD 01.03.2022 SWAO Oi.03.2022 NA NA 07.04.202 2 No payment of dues of 01.02.2022, 01.03.2022 and amount due on 01,04.2022 at EOD 01.04.2002 oo SMAT ‘D10a.2022 i 03.03.2022 Na NA ‘No payment of dues of 01,02.2022 tt 01.04.2022 at EOD 02.04.2022 a SMAS O102BORE 1 02.04.2022 NA NR T0522 2 ‘No payment of dues of 01.02.2022 ti 01.05.2022 at EOD 01.05.2022 SWAZ 0702 2022 1 02.04.2022 Na a 'No payment of dues of 01.02.2022 til a NPA NA NPA OBOE B0207.05.2022 at EOD 02.05.2022 0706022 [OT05022 | Fullypaiddues of [93 | NPA Na NPA (02.05.2022 01.02.2022 at EOD 01.06,022 D1.07.022 | 01.07.22 | Paid entire cues | 62 | NPA Na NPA 02.05 2022 of 01.03.2022 & 01,04,2022 at EOD 01.07.2022 07.08.022 | 07.08.022 | Paid entire dues | 32 | NPA NA NPA (02.05 2022 (of 01.05.2022 & 01.06.2022 at EOD 01.08.2022, 01.09.022 |07.09.022 | Paid entire dues | 7 NPA NA NPA 02.05 2022 of 01.07.2022 & 01.08.2022 at EOD 01.09.2022, 01.10.0282 | 01.10.022 | Paid entire dues | 0 Standard NA NA STO from cof 01.09.2022 & ‘Account with 01.10.2022 01.10.2022 No Over dues. Vwe also understand that the aforesaid few examples are illustrative and not exhaustive In nature covering common scenarios, and that, the IRACP norms and clarifications provided by RBI on the subjects referred above will prevail Yours faithfully, Name of the Borrower(s) (Signature) : Name of the Co-Borrower (S) / Guarantor (S)_(Signature) Date: Place: