The RBI has placed restrictions the Edelweiss group — ECL Finance and Edelweiss Asset Reconstruction Company (EARCL) — over ‘evergreening’ stressed loans.

Banking & Finance

The RBI has placed restrictions on two companies of the Edelweiss group — ECL Finance and Edelweiss Asset Reconstruction Company (EARCL) — over ‘evergreening’ stressed loans. Evergreening of loans is the practice where lenders extend additional credit to borrowers who cannot repay their existing loans. ECL Finance offers corporate finance, loans against property and securities, MSME lending among others.


      EARCL is among the largest companies dealing with the purchase and recovery of bad loans from lenders.

     

     

 

     


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