Under this scheme, borrowers can avail an incremental loan from their existing bank/NBFC of up to 20% of the credit exposure with that bank/NBFC, without providing an NOC (no objection certificate).
However, borrowers can avail the entire facility (20% incremental loan of overall credit exposure across all their lending institution partners) from a single existing lender, by providing an NOC from all the other lenders.
At any point, total incremental loan cannot go above 20% of the customer’s net outstanding across all existing lenders as on 29th Feb 2020.