What is RBI one time restructuring policy for loans?
How to apply for Loan restructuring due to Covid19 impact?
RBI One Time Restructuring on Covid19 Relief of loan explained
All loans, such as Personal loans, Business, can be restructured as per RBI’s new decision framework window.
The Reserve Bank of India (RBI) is came out with the one-time restructuring of all loans, which consists of personal loans as well.
Provided you didn’t default on your loans as of 1 March 2020, you can get the new repayment plan for your existing loans.
RBI has set a deadline of 1 December 2020 for all restructuring requests to be eligible and restructured within ninety days of being applied.
Car loans, personal loans, or any kind of bank loan that you couldn’t make the repayments, are now eligible for restructuring.
The Reserve Bank of India (RBI) introduced that it will open up a window for a one-time restructuring of loans — all loans — that have been impacted by means of COVID 19.
This facility roll-out by RBI to give you relief from financial crises arised due to COVID19 pandemic and to cope up you to pay off your loans, you can ask your Bank or financial institution to alter the repayment schedule or increase the term of loan to reduce the monthly EMI of repayment.
The least eligible requirement is that you should not have defaulted on your loan repayments as of 1 March 2020 or before 30 days of that day.
The amount which was outstanding as on that day will be eligible for restructuring.
You have until 31 December to apply for a new payment plan.
As per the RBI’s circular, this resolution schedule has to be invoked by 31 December 2020.
Once Bank rolled out by banks, it have to be implemented with in 90 days.
However, RBI advised that banks and all lending institutions strive and kick off their plans before the due dates.
The decision could consist of the following features:
Rescheduling of payments with additional increased term of loan.
Conversion of accrual interest on loan to a additional loan facility.
granting additional moratorium/holiday period.
Modification of overall repayment of the loan.
The terms,guidelines of bank to apply for this facility comprises how your eligibility will be determined by bank to considere for the cited facility is your projected income over the next two years.
You need to apply for restructuring of your existing within defined timeframe, will save you to be categorised as a non-performing asset (NPA) in case you are unable to repay your loans on existing terms and conditions of your original sanction of the loan due to COVID19.
But, if you wants to continue with the original sanction term of repayment you can but it will be not be considered for to be relaxed under this facility.
Team India Moneywise Outlook- This Restructuring and rescheduling facility is the need of the situation as this is the only mean to manage your loans to beat with various inconvenience caused by Covid19.
One can apply for this RBI loan restructuring facility which will definitely cause the additional burden of interest EMIs.By analysing your present situation , just get your EMIs reduce as per this policy and increase the payment tenure after few years as the condition improves and will get over from this financial crises,you can very well manage it by making additional payments as and when possible towards loan principal and reduce loan liability over the period of time.
Thanks for reading.
Team Money Wise
Disclaimer:We Team Indian Money Wise expressed our view to simplify the scheme information and this article is not a advice or suggestion to any individual.first analyse their financial situation and then take decisions.
The information provided on this article is only for educational and awareness purpose.
The information provided on this article is only for educational and awareness purpose.