SL NO | HEADS | SUGGESTIONS/ RECOMMENDATIONS |
1 | Topping up on existing loan | Small Term Loans/ Business Loans- Allowing top up of the loan to the extent loan repaid against existing sanction |
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| (more than 18 months relationship of each transaction ) |
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| Moratorium of both principal and interest can be given for next 12 months, then ballooning method of payment. What businesses want is time |
2 | Releasing Liquid security | Previously, Some portion of total security might have been taken as liquid security being 1st ever relationship or other wise . Keeping in view special situation and vintage with client, such liquid security can be replenished by other available / new security in line with nature if available security. |
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| Tail end charges can be proposed (to be taken after 24 months) for such accommodations |
3 | Releasing Proportionate Security | Allowing businesses, release of proportionate security against their repayment for more than 18 months, if fresh disbursement is not possible so that they can explore other options |
4 | Conversion of existing unsecured loan | Existing lender can take over unsecured high cost business loan (normally above 17-18% as secured business loan , against existing collaterals which is generally on higher side keeping in view the current exposures. Such secured loan can be @12-13%. |
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| This will decrease monthly EMI burden and increase overall viability of business |
5 | Make NFB facility interchangeable with fund based | Most of such already sanctioned NFB facilities are under utilised . This can be made interchangeable with fund based . |
6 | Allowing OD facility | There is a good scope of allowing such OD facility (20% of total sanctioned facility) in lieu of existing fund based working capital limits. As many of businesses may not be able to adhere MPBF norms in short term and still require funds to take care their overheads and operating cycles |
About the Author
20+ Years in Corporate — Board Advisory & Fund Raising as Core. Worked in different Companies as CFO for almost a decade. Currently working as Board Advisor to different companies, primarily Real Estate Groups. Fund Raising (both domestic & foreign) is core competency. Has exposure to Domestic as well as London AIM equity listing. Have extensive experience in fund raising (both equity and debt and Rs & $). Man on a mission to take Real Estate Companies from “Good” to “Great”. International network of Consultants & Networks. Debt Syndication/Capital Market Specialist. Domain: Real Estate/Logistic/Oil & Gas/Hotel/Tech start-up/ Africa Mining – Project Finance.
CA SUNIL K PANDEY
CA, CMA, IIM C
With over 11 years of experience in banking and corporate finance, Sumit Sharma has worked with global brands like Deloitte, Mahindra World SEZ, and USA-based IT firms, gaining exposure across India, the Middle East, and international markets .His expertise spans financial structuring, process optimization, and tech driven automation, with a strong track record in ERP implementation, cost retaionalization, and corporate finance reforms. He has successfully led debenture issuances backed by land mortgages and drive cross-departmental financial efficiency initiatives.
A member of ICAI and ICSI, with an L.L.B(Professional) from the University of Rajasthan, Jaipur, Sumit Sharma brings a unique blend of finance, law and technology to the table. His Strategic approach to financial transformation and governance has helped busniesses streamline operations and scale effectively.
