Common use of Age of oldest Dues Clause in Contracts

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 1st 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 (SM A) 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: Loans in the nature of Term Loans Loans in the nature of cash credit/ overdraft SMA Sub-categories Basis for classification - Principal or interest payment or any other amount wholly or partly overdue SMA Sub-categories Basis for classification - Outstanding balance remains continuously in excess of the sanctioned limit or drawing power, whichever is lower, for a period of SMA-0 Upto 30 days SMA-1 More than 30 days and upto 60 days SMA-1 More than 30 days and upto 60 days SMA-2 More than 60 days and upto 90 days SMA-2 More than 60 days and upto 90 days However, In case of NBFCs, the reference to 90 days for SMA-2 / NPA classification to be read as per the applicable norms and also subject to the provisions of the RBI Circular DOR CRE.REC .No.60/03.10.001/2021- 22 dated October 22,2021 on 'Scale Based Regulation (SBR): A revised Regulatory framework for NBFCs . Also . the asset classification norms of Agricultural advances which are based on Crop Season shall continue as hitherto. Signature of Borrower(s) Non-performing Asset: Non-Performing Asset (NPA) is a loan or an advance where:

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 1st 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 (SM ASMA) and Non-Performing Asset (NPA) Lending institutions will recognize recognise 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: Loans in the nature of Term Loans Loans in the nature of cash credit/ overdraft SMA Sub-categories Basis for classification - Principal or interest payment or any other amount wholly or partly overdue SMA Sub-categories Basis for classification - Outstanding balance remains continuously in excess of the sanctioned limit or drawing power, whichever is lower, for a period of SMA-0 Upto 30 days SMA-1 More than 30 days and upto 60 days SMA-1 More SMX- 0 Xore than 30 days and upto 60 days SMA-2 More than 60 days and upto 90 days SMA-2 More than 60 days and upto 90 days However, In case of NBFCs, the reference to 90 days for SMA-2 / NPA classification to be read as per the applicable norms and also subject to the provisions of the RBI RB I Circular DOR CRE.REC .No.60/03.10.001/2021- 22 dated October 22,2021 on '‘Scale Based Regulation (SBR): A revised Regulatory framework for NBFCs NBFCs. Also . the asset classification norms of Agricultural advances which are based on Crop Season shall continue as hitherto. Signature of Borrower(s) Non-performing Asset: Non-Performing Asset (NPA) is a loan or an advance where:

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 1st 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 (SM A) and Non-Performing Asset (NPA) Lending institutions will recognize recognise 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: Loans in the nature of Term Loans Loans in the nature of cash credit/ overdraft SMA Sub-categories Basis for classification - Principal or interest payment or any other amount wholly or partly overdue SMA Sub-categories Basis for classification - Outstanding balance remains continuously in excess of the sanctioned limit or drawing power, whichever is lower, for a period of SMA-0 Upto 30 days SMA-1 More than 30 days and upto 60 days SMA-1 More than 30 days and upto 60 days SMA-2 More than 60 days and upto 90 days SMA-2 More than 60 days and upto 90 days However, In case of NBFCs, the reference to 90 days for SMA-2 / SMA-2/ NPA classification to be read as per the applicable norms and also subject to the provisions of the RBI Circular DOR CRE.REC .No.60/03.10.001/2021- 22 dated October 22,2021 on 'Scale Based Regulation (SBR): A revised Regulatory framework for NBFCs . Also . the asset classification norms of Agricultural advances which are based on Crop Season shall continue as hitherto. Signature of Borrower(s) Non-performing Asset: Non-Performing Asset (NPA) is a loan or an advance where:

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 1st 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 (SM A) 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: Loans in the nature of Term Loans Loans in the nature of cash credit/ overdraft SMA Sub-categories Basis for classification - Principal or interest payment or any other amount wholly or partly overdue SMA Sub-categories Basis for classification - Outstanding balance remains continuously in excess of the sanctioned limit or drawing power, whichever is lower, for a period of SMA-0 Upto 30 days SMA-1 More than 30 days and upto 60 days SMA-1 More than 30 days and upto 60 days SMA-2 More than 60 days and upto 90 days SMA-2 More than 60 days and upto 90 days However, In case of NBFCs, the reference to 90 days for SMA-2 / SMA-2/ NPA classification to be read as per the applicable norms and also subject to the provisions of the RBI Circular DOR CRE.REC .No.60/03.10.001/2021- .No.60/ 03.10.001/ 2021- 22 dated October 22,2021 on '‘Scale Based Regulation (SBR): A revised Regulatory framework for NBFCs . Also . the asset classification norms of Agricultural advances which are based on Crop Season shall continue as hitherto. Signature of Borrower(s) Non-performing Asset: Non-Performing Asset (NPA) is a loan or an advance where: