Refinance of ARC Loan

💡 Benefits of Refinance of ARC Loan

Benefit	Explanation
✅ Lower Interest Rate	Compared to the high rates charged by ARCs.
✅ Restored Banking Relations	Re-entry into the formal credit ecosystem.
✅ Credit Score Improvement	Repayment improves business credibility.
✅ Growth Capital Availability	Refinance may include working capital/top-up loan.
✅ Better Cash Flow	Longer repayment tenure reduces EMI burden.
✅ Exit from ARC Monitoring	Frees the business from ARC scrutiny and restrictions.

🏢 Refinance of ARC Loan Consultancy in India – Overview

• Refinance consultancy helps borrowers negotiate and obtain refinancing of loans currently held with ARCs by:
  • Evaluating outstanding ARC loan terms
  • Assessing borrower’s improved creditworthiness
  • Liaising with banks/NBFCs for new funding
  • Structuring the refinancing to settle ARC dues

🔧 Key Services Provided by Consultancy Firms

• 1. ARC Loan Review & Due Diligence
  • Analysis of ARC settlement amount, terms, interest & charges.
  • Assessment of borrower’s eligibility for refinance.
• 2. Lender Identification
  • Matching with banks/NBFCs willing to refinance distressed assets.
  • Exploring refinance under RBI-approved schemes.
• 3. Credit Profiling & Documentation
  • Preparing project reports, CMA data, cash flow projections.
  • Assisting in legal and financial compliance.
• 4. Negotiation & Deal Structuring
  • Optimal terms for refinance: interest rate, tenure, moratorium.
  • Settlement negotiation with ARC if partial waiver is possible.
• 5. End-to-End Execution Support
  • Coordination with valuers, legal, bankers, ARCs.
  • Facilitating sanction, disbursement & ARC repayment.

📘 Who Should Consider ARC Loan Refinance?

• SMEs recovering from past financial distress
• Units with improved turnover and profitability
• Borrowers in OTS (One-Time Settlement) stage with ARC
• Businesses seeking credit rating restoration

📜 Regulatory Framework

• RBI permits refinancing of restructured loans under specific norms
• NBFCs and private banks actively refinance ARC loans based on viability
• Must adhere to KYC/AML, GST, income tax compliance norms

📞 Why Hire a Consultant?

• Expertise in restructuring and lender negotiation
• Network with banks, NBFCs, ARCs, and legal experts
• Faster execution and higher chances of loan approval