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Sugam Rinn Bhugtan Yojana (SUGAM Scheme) - Special OTS Scheme (Modified)
1. Scheme Period Scheme effective date: September 2, 2024; Scheme end date: March 25, 2025
2. Eligible Accounts Retail NPA accounts with NPA date up to March 31, 2021 which continue to be NPAs as on August 31, 2024 with Borrower-wise aggregate Gross Principal Outstanding (GPO) above Rs.0.10 crore and up to Rs.10 crore, subject to eligibility criteria, are covered in the Scheme.
3. Non eligible Accounts/ Borrowers Accounts falling in the following parameter/ categories are inter alia not eligible under the Scheme:
  1. Where the sanction given under general One Time Settlement (OTS)/ Negotiated Settlement (NS), if it is in currency;
  2. Where formal offer for settlement along with upfront amount has been received before launch of this scheme and the proposal is under consideration;
  3. Overdraft/loan against FD/NSC/LIC/LAS, Gold Loans or any other liquid security;
  4. Staff loans (including staff credit card) and Staff guaranteed loans including commercial loans granted to Staff;
  5. Accounts under Vendor Bill Discounting / Vendor Finance;
  6. Accounts secured by Corporate Guarantee (CG);
  7. Accounts where borrower is admitted in NCLT under IBC;
  8. Single (standalone) CA/SB accounts with debit balance;
  9. Loans/ advances guaranteed by State/ Central Government, bodies viz., CGTMSE, Credit Enhancement Guarantee Scheme for SC (CEGSSC), ECGC etc., loans sanctioned under Stand up India Scheme and other guarantee schemes of State/ Central Government/ Bodies viz., NHB etc.;
  10. Wherever charged assets are successfully auctioned/ bids received under public auction/private treaty but the full sale price is yet to be realized and/or realized amount cannot be appropriated to the loan accounts due to various reasons including litigation;
  11. If one account of the Borrower is not eligible for settlement under norms of the scheme, all other accounts of the Borrower shall also be not eligible;
  12. In case common security is extended to multiple borrowers, where any/few of the borrower(s) is/are ineligible for settlement under the Scheme, but other borrower(s) is/are eligible, only the eligible borrower(s) may be covered under the scheme, provided such ineligible borrower(s) pay(s) Total Dues of the ineligible account(s) before issuance of Offer Letter(s) to the Eligible Borrower(s).
4. Concessions available to Borrowers
  1. Waiver of interest and expenses, in respect of all eligible accounts, except GECL, where total dues to be paid;
  2. Hair-cut / Concessions based on available security coverage.
5. Payment Terms
  1. Parties to Settlements shall have to deposit at least 10% of the Settlement amount as upfront on or before December 31, 2024, to confirm his/ her/ its participation in the Scheme.
  2. Balance settlement amount would be payable:
    within maximum 90 days from the date of Letter of Approval (LOA) for payment without interest

    OR

    on or before March 25, 2025 for payment with interest @ 1 year MCLR (as on August 31, 2024) + 2% per annum calculated on simple interest basis on the amount paid beyond 90 days from the date of this LOA.
However, under no circumstances the payment under this settlement can be made beyond March 25, 2025, even if residual no of days from the date of date of this LOA are less than 90 days.
Please contact your Home Branch and concerned Retail Recovery Officer (RRO) for further details.