Frequently Asked Legal Questions and Answers › Category: Property Issues › Can Karur Vysya Bank reconsider loan applications for pandemic-affected businesses seeking extension?

Surya Coimbatore asked 1 year ago

Can Karur Vysya Bank reconsider loan applications for pandemic-affected businesses seeking extension?

Gratitude for Loan Facility Provided by Karur Vysya Bank

I am writing to express my sincere gratitude for the loan facility provided by Karur Vysya Bank for my business back in 2015. My name is Surya, and I am an entrepreneur based in Coimbatore. My business primarily operates in the saree manufacturing industry, and I have been a loyal customer of your esteemed institution for several years. Can Karur Vysya Bank reconsider loan applications for pandemic-affected businesses seeking extension?

Can Karur Vysya Bank reconsider loan applications for pandemic-affected businesses seeking extension?

Challenges Faced Due to COVID-19 Pandemic - reconsider loan applications

Impact on Business Revenue

I would like to bring to your attention the challenges that my business has faced due to the unforeseen impact of the COVID-19 pandemic. As you may be aware, the pandemic had severe repercussions on various industries, including mine. Despite our best efforts, my business experienced a significant decline in revenue, making it difficult to meet the full repayment obligations of the loan. However, I have diligently managed to pay the monthly interest on the loan to avoid defaulting on my financial commitments.

Potential for Growth and Expansion

With the gradual recovery from the pandemic, I firmly believe that there is a substantial potential for growth and expansion in my business. Recognizing this opportunity, I approached your bank with a sincere request for an additional loan to fuel the expansion plans. Unfortunately, my request was declined, and I was unable to secure the necessary funds to leverage the growth potential effectively.

Concerns About Loan Evaluation Process

Similar Case in the Industry

I recently became aware of a situation similar to mine, involving a close friend who is also a saree manufacturer. Despite having a commendable turnover of thirty crore rupees per annum, my friend's loan application was also rejected by your esteemed institution. This development has raised concerns about the criteria and evaluation process for loan applications in our industry.

Request for Reconsideration

Considering the circumstances, I kindly ask you to reconsider my loan application and extend the repayment period by two years. In fact, this extension will give me the necessary breathing space to stabilize my business. Consequently, I will recover from the setbacks caused by the pandemic with this extension. Furthermore, I will create a solid foundation for future growth through this extension.Moreover, I assure you that I am committed to fulfilling my financial obligations. Therefore, I will work diligently to meet the revised repayment schedule.

Appeal for Policy Review - reconsider loan applications

I understand that your bank has its own lending policies and assessment criteria. However, I believe that the current circumstances warrant a comprehensive review of these policies. Specifically, these policies particularly affect businesses that the COVID-19 pandemic has significantly impacted.By reassessing the loan applications of entrepreneurs like me and my friend, you can contribute to the revival and growth of our businesses. Furthermore, you have the opportunity to support the overall economic recovery of our region. Consequently, your bank can play a crucial role in helping us overcome the challenges posed by the pandemic.