The Tamilnadu Industrial Investment Corporation Ltd
(A Government Of Tamil Nadu Undertaking)
Funding Success...

One Time Settlement (OTS) Schemes

  1. Loans under Loss and Written off categories without any asset back up :

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount Delegated Authority Category of Loan Settlement Amount Delegated Authority Remarks
1. All loans under Loss and Written off categories without any asset back up as on 31.3.2013 10% of principal outstanding or 5% of principal disbursed whichever is higher plus 10% of other dues Branch Settlement Committee (BSC) All loans under Loss and Written off categories without any asset back up as on 31.3.2014

No change

(10%   of   principal

outstanding   or 5% of             principal

disbursed whichever is higher plus 10% of other dues)

No change

(BSC)

Cut off date moved to latest Balance Sheet date i.e.

31.3.2014

 

  1. Loans disbursed up to Rs.10.00 lakhs:

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount Delegated Authority Category of Loan Settlement Amount Delegated Authority Remarks
2.

All    loans disbursed

up to Rs.1.00 lakh with asset back up (with       primary        / collateral       security available in the form of land / building / machinery)  and  in the   categories       of Doubtful and below as       on    31.3.2013 including written off

1.10      times            the

principal                 disbursed

reduced                          by

remittances or 5% of the principal disbursed whichever is higher plus 25% of other dues

 

BSC

All    loans disbursed

up to Rs.1.00 lakh with asset back up (with       primary        / collateral security available in the form of land / building / machinery)  and  in the    categories       of Doubtful and below as       on        31.3.2014 including written off

No change

(1.10   times   the principal disbursed reduced                 by remittances or 5% of  the            principal disbursed whichever         is higher plus 25% of other dues)

No change

(BSC)

Cut off date

moved to latest Balance Sheet date i.e.

31.3.2014

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount

Delegated

Authority

Category of Loan

Settlement

Amount

Delegated

Authority

Remarks
3.

All loans disbursed above Rs.1.00 lakh and up to Rs.5.00 lakhs with asset back up (with primary / collateral security available in the form of land / building                /

machinery) including all transport loans under TAHDCO Scheme and semi automatic looms in the categories of Doubtful and below as    on    31.3.2013

including written off

1.10 times the principal      disbursed

reduced                          by

remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues

 

BSC

All loans disbursed above Rs.1.00 lakh and up to Rs.5.00 lakhs with asset back up (with primary / collateral security available in the form of land / building                        /

machinery) including all transport loans under TAHDCO Scheme and semi automatic looms in the categories of Doubtful and below as    on    31.3.2014

including written off

No change

(1.10   times   the principal disbursed reduced                     by remittances made so far or 10% of the         principal disbursed whichever                   is higher plus 25% of other dues)

No change

(BSC)

Cut off date moved to latest Balance Sheet date i.e.

31.3.2014

4. Loans disbursed above Rs.5.00 lakhs and up to Rs.10.00 lakhs with asset back up  and security in the form of machinery / vehicle only (without any        security available in the form of land / building) and in the category of Doubtful asset and below as on 31.3.2013 including written off.

1.10 times the principal      disbursed

reduced                       by

remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues

 

BSC

Loans disbursed above Rs.5.00 lakhs and up to Rs.10.00 lakhs with asset back up  and security in the form of machinery / vehicle only (without any        security available in the form of land / building) and in the category of Doubtful asset and below as on 31.3.2014 including written off. No change (1.10   times          the principal disbursed reduced                     by remittances made so far or 10% of the               principal disbursed whichever                  is higher plus 25% of other dues)

No change

(BSC)

Cut off date moved to latest Balance Sheet date           i.e.

31.3.2014

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount Delegated Authority Category of Loan Settlement Amount Delegated Authority Remarks
5

Loans disbursed above Rs.5.00 lakh and up to Rs.10.00 lakhs with asset back up (with primary / collateral security available

in the form of land

/ building / machinery) including all transport loans under TAHDCO Scheme and semi automatic looms

 

a) Loans sanctioned prior             to

1.4.2000

 

 

 

 

 

 

 

 

 

1.25      times            the principal             disbursed reduced by remittances made so far or 25% of the principal

disbursed whichever is higher plus 25% of other dues

 

 

 

 

 

 

 

 

 

 

 

 

BSC

Loans disbursed above Rs.5.00 lakh and up to Rs.10.00 lakhs with asset back up (with primary / collateral security available in the form of land / building                /

machinery) including all transport loans under TAHDCO Scheme and semi automatic looms and in the category of Doubtful asset and below as on 31.03.2014

including written off.

 

 

 

 

 

No change

 

(1.25   times          the principal disbursed reduced by remittances made so far or 25% of the principal disbursed whichever is higher plus 25% of other dues)

No change

(BSC)

Cut off date is fixed                   as

31/03/2014

 

 

 

 

 

 

 

Distinction made between sanctions prior to 1.4.2004                      and

after instead of 1.4.2000

a) Loans sanctioned prior to 1.4.2004

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount

Delegated

Authority

Category of Loan

Settlement

Amount

Delegated

Authority

Remarks

b) Loans sanctioned after 1.4.2000 and in the categories of Doubtful and below

as on 31.3.2013 including

written off

Waiver of penal & RSC

b) Loans sanctioned after 1.4.2004 and in the categories of Doubtful and below

as on 31.3.2014 including written off

Waiver of penal

No change

(RSC)

Cut off date moved to latest Balance Sheet date                i.e.

31.3.2014.

 

Distinction made between sanctions prior to 1.4.2004                      and

after instead of 1.4.2000.

 

 

RV is arrived based on the number of times an asset is brought for

auction

compound interest & compound
(or) OTS amount to interest (or)
cover an IRR of OTS amount to
12% (or) realizable cover an IRR of
value whichever is 12% (or)
lower Realizable
Value*
whichever is
lower

* Realizable Value (RV)

For assets not brought for auction sale by the Corporation  –  100% of present RV falling under the purview of valuation within   ONE year

For assets auctioned up to 2 times –   100% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 3 times  –   90% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 4 times & above  –    75% of present RV falling under the purview of valuation within ONE year

 

3.      Loans disbursed above Rs.10.00 lakhs:

 

EXISTING PROPOSED
Sl. No. Category of Loan Settlement Amount

Competent Authority for

Approval

Category                        of Loan Settlement Amount Competent Authority for Approval Remarks
6. a) All units Waiver of penal &

a)         All             units including            Short Term         Loans sanctioned         prior to 1.4.2004 and in the category of Doubtful asset and below as on 31.03.2014 including written off.

 

b)         All             units including            Short Term         Loans sanctioned         after 1.4.2004 and in the category of Doubtful         asset and below as on 31.03.2014 including written off.

Waiver of

Cut off date is fixed          as

31/03/2014

 

Distinction made between sanctions prior to     1.4.2004

and after instead of 1.4.2000.

 

 

RV is arrived based on the number of times an asset is brought for auction

including Short compound interest penal & No change

Term Loans

sanctioned prior

(or) OTS amount to

cover an IRR of

compound

interest (or)

 

(DRC)

to 1.4.2000 12% (or) realizable OTS amount
value whichever is DRC to cover an
lower IRR of 12%
(or) Realizable
Value*
whichever is
lower

 

b) All units including Short Term Loans sanctioned after to 1.4.2000

 

Waiver of penal interest (or) OTS amount to cover an IRR of 15% (or) realizable value whichever is lower

 

Waiver of penal interest (or) OTS

amount to cover an IRR of 15% (or) Realizable Value* whichever is lower

 

 

No change (DRC)

 

* Realizable Value (RV)

For assets not brought for auction sale by the Corporation    –   100% of present RV falling under the purview of valuation within   ONE year

For assets auctioned up to 2 times   –    100% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 3 times  –    90% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 4 times & above   –    75% of present RV falling under the purview of valuation within ONE year

 

4.      One Time Settlement Scheme for Hire Purchase:

 

EXISTING PROPOSED
Sl. No. Category of the Unit Settlement Amount Competent Authority for  Approval Category of the Unit Settlement Amount Competent Authority for Approval Remarks
7. All Units

 

Waiver of penal

 

DRC

 

All units in the category of

Doubtful asset and below as on 31.03.2014

including written off.

 

(Waiver of

 

No change

Cut    off   date            is fixed                as

31/03/2014

& compound

interest (or) OTS

penal &

compound

(DRC)
amount to cover interest (or) RV is arrived
an IRR of 12% OTS amount based on the
(or) realizable to cover an number of times
value whichever IRR of 12% an asset is
is lower (or) Realizable brought for
Value* auction
whichever is
lower)

* Realizable Value (RV)

For assets not brought for auction sale by the Corporation   –          100% of present RV falling under the purview of valuation within   ONE year

For assets auctioned up to 2 times  –   100% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 3 times  –      90% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 4 times & above  –      75% of present RV falling under the purview of valuation within ONE year

 

5.      One Time Settlement Scheme for Lease Finance:

 

EXISTING PROPOSED
Sl. No. Category of the Unit Settlement Amount Competent Authority for  Approval Category of the Unit Settlement Amount Competent Authority for Approval Remarks
8. All units

 

Waiver of penal

 

DRC

 

All units in the category of

Doubtful asset and below as on 31.03.2014

including written off.

 

Waiver of

 

No change

Cut off date is fixed                   as

31/03/2014

& compound

interest (or)

penal &

compound

(DRC)

 

RV is arrived

OTS amount to interest (or) based on the
cover an IRR of OTS amount number of times
12% (or) to cover an an asset is
realizable value IRR of 12% brought for
whichever is (or) Realizable auction
lower Value*
whichever is
lower

* Realizable Value (RV)

 

For assets not brought for auction sale by the Corporation  – 100% of present RV falling under the purview of valuation within   ONE year

For assets auctioned up to 2 times  –   100% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 3 times   –      90% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 4 times & above –      75% of present RV falling under the purview of valuation within ONE year

 

06. for Soft Loan / Seed Capital:

 

EXISTING PROPOSED

 

Sl. No.

 

Seed Capital / Soft Loan

 

Settlement Amount

 

Seed Capital / Soft Loan

 

Settlement Amount

 

Remarks

9. For all seed capital / soft loan cases Settlement amount will be arrived both for term loan and soft loan together based on the realizable value of securities, IRR, Etc.

For all seed capital

/

soft loan cases and in the category of Doubtful asset and below as on 31.03.2014 including written off.

Settlement amount will be arrived both for term loan and soft loan together based on the Realizable Value* of securities, IRR, Etc.

Cut off date is fixed as 31/03/2014

 

RV is arrived based on the number of times an asset is brought for auction

* Realizable Value (RV)

 

For assets not brought for auction sale by the Corporation –  100% of present RV falling under the purview of valuation within   ONE year

For assets auctioned up to 2 times  –     100% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 3 times   –      90% of present RV falling under the purview of valuation within ONE year

For assets auctioned up to 4 times & above   –   75% of present RV falling under the purview of valuation within ONE year

Note:

  • In respect of loans sanctioned above10 lakhs and sanctioned after 1.4.2002
  1. There shall not be reversal of interest earned / credited to the loan
  2. Waiver shall not exceed the interest outstanding and shall result in collection of the entire principal disbursed and simple interest together with otherdues except the cases where the realizable value is very
  • In respect of cases which are classified as wilful defaulters as per RBI guidelines the competent authority for approval will be as under
  • Loans upto 5.00 lakhs –        RSC
  1. Loans above Rs.5.00 lakhs and

upto Rs.10.00 lakhs                       –        DRC

  1. Loans above 10.00 lakhs –       Board
  • In respect of GES cases covered by Credit Guarantee, where claim has been settled by CGTMSE, OTS settlements will be informed and remitted to CGTMSE
  • The above settlement schemes do not apply to sanctions under BFS
  • The modified OTS scheme indicated above will not be applicable to those borrowers where an OTS has already been granted earlier unless the approval has since been withdrawn / legal action
  • The decision of TIIC regarding eligibility, interpretation of the OTS policy and offering OTS to individual units shall be final and binding upon the borrower and without prejudice to the rights and remedies available to TIIC relating to recovery, which shall be invariably mentioned in all communications related to OTS
  • As per circulars TIIC/HO/REC/(5b)/2013-14, 10/01/2014 and TIIC/HO/REC/AG/2013-14, dt.14.3.2014, the appropriate authority shall fix the OTS amount taking into account the OTS offers received earlier, etc.,
  • Even though OTS approval is valid only for one year, condonation of delay in settlement can be considered as indicated in circular.
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