Hotels are in talks with banks on a three-pronged approach on paying principal and interest after the moratorium of six months the Reserve Bank of India (RBI) has given is over by September.
For one, hotels with standard loans are in discussion with banks on increasing their terms by another 12 months.
On average the terms of loans for the industry are six-seven years. This will require the RBI’s endorsement.
The second approach is to allow hotels with a good track record to spread the payment of the outstanding principal and interest due for the six-month morator.....