The Reserve Bank of India has once again facilitated loan restructuring (debt restructuring), with the Corona epidemic-stricken individual lenders and small traders. In such a situation, if you are facing financial crisis from the second wave of Corona, then you can reduce the burden of EMI by restructuring your home, car or personal loan. According to RBI guidelines, loans up to Rs 25 crore can be restructured.
Have to apply like this
After the RBI announcement, to take advantage of loan restructuring, first of all, you have to contact your bank and apply. On receipt of your application, the bank will examine your financial record and the reason for restructuring the loan. The bank, upon being satisfied, will ask you for the necessary documents. After successful verification of your deposit documents and application, the loan will approve restructuring. However, the bank will have the right to accept and cancel the application.
Who can take advantage of the scheme
According to the RBI announcement regarding loan restructuring, loan borrowers up to Rs 25 crore will get the benefit of this second restructuring only if any loan restructuring framework, including the resolution framework announced by the person / entity on 6 August Would not have taken advantage of At the same time, banks can provide relief for a period of two years for those who take advantage of loan restructuring for the second time. Understand in easy language, under the first restructuring plan, the duration was reduced in 2 years, in the second restructuring, it will be available only for that length of time. The person / unit will not get the full two years of benefits. Apart from this, there has been no change in other conditions.
The Reserve Bank of India has once again facilitated loan restructuring (debt restructuring), with the Corona epidemic-stricken individual lenders and small traders. In such a situation, if you are facing financial crisis from the second wave of Corona, then you can reduce the burden of EMI by restructuring your home, car or personal loan. According to RBI guidelines, loans up to Rs 25 crore can be restructured.
Have to apply like this
After the RBI announcement, to take advantage of loan restructuring, first of all, you have to contact your bank and apply. On receipt of your application, the bank will examine your financial record and the reason for restructuring the loan. The bank, upon being satisfied, will ask you for the necessary documents. After successful verification of your deposit documents and application, the loan will approve restructuring. However, the bank will have the right to accept and cancel the application.
Who can take advantage of the scheme
According to the RBI announcement regarding loan restructuring, loan borrowers up to Rs 25 crore will get the benefit of this second restructuring only if any loan restructuring framework, including the resolution framework announced by the person / entity on 6 August Would not have taken advantage of At the same time, banks can provide relief for a period of two years for those who take advantage of loan restructuring for the second time. Understand in easy language, under the first restructuring plan, the duration was reduced in 2 years, in the second restructuring, it will be available only for that length of time. The person / unit will not get the full two years of benefits. Apart from this, there has been no change in other conditions.
How long to apply
RBI also announced with the announcement that under the new arrangement for loan restructuring, applications can be made only till September 30, 2021. If all the conditions are met then the person / entity taking the loan will have to implement it within 90 days by the banks.
Will there be a waiver of principal and interest?
No, it does not happen. Under any loan restructuring, you can simply exceed the time limit. This is because the burden of heavy EMI on you will be reduced and you pay less installment for a longer period of time.
Take care of the cost
Financial experts say that banks charge a processing fee when restructuring a loan. Many banks may increase the interest rate marginally. In such a situation, if you can pay your savings or EMI from another source, then try to save. Credit restructuring also has a bad effect on the credit score. If you are employed and close to retirement, the loan restructuring option can potentially be very risky to extend the repayment period.
What does restructuring mean?
When a person or a company takes a loan, the bank has to repay with interest over a fixed period, but in case of any adverse financial situation or disaster and it becomes difficult to repay the loan, in such a situation, the RBI facilitates loan restructuring. . Suppose you had taken a loan for 60 months. Under the restructuring facility, there will be an opportunity to repay for 65 or 70 months instead of 60.
