960919
STATE BANK CIRCULAR RELATING TO NBFIs
NBFLs' Circular No. 8/96
dated the 19th September, 1996
Minimum Condition for Grant of Financing Facilities
Please refer to NBFIs Circular No. 19 dated 11th December, 1993. Following instructions supersede the contents of the above referred circular.
When considering proposals for fund based/non-fund based accommodation NBFIs should give due weightage to credit report relating to the borrower and his group obtained from Credit Information Bureau of the State Bank. If the credit report indicates over-exposure/ default in meeting the obligations and in the opinion of the NBFI the default/over-exposure is wilful or the unit is no longer viable further accommodation may be denied. However if the default/over-exposure is due to circumstances beyond the control of the borrower and further accommodation would put the borrower back on track and enable it to regularise the position, the NBFI may consider extending accommodation as it may deem fit.
