The bill raises total outstanding loan commitment limits to $4.5 million from $1.5 million and the total gross loan amount to $5 million from $2 million.
When an outstanding loan becomes impaired, banks are required to withhold the amount from their earnings (this is known as a provision for credit loss).
The borrower can apply any surplus funds to the outstanding loan principal at any time, reducing the amount of interest calculated from that day onward.