By Priyanka Sambhav
If Coronavirus has had an adverse impact on your earning and you are finding it difficult to repay your loans then RBI’s loan restructuring scheme can come to your rescue. India’s largest bank- State Bank of India has come forward with the rules and regulations of its loan restructuring scheme. SBI is asking its borrowers to fill out a form giving all the details regarding their status of earning and based on that you will be given a restructuring plan.
What happens in loan restructuring?
Restructuring of loan will enable borrowers to reschedule the payment cycle by deferring the payment for a few months or lower the interest of their loan depending upon the the agreement that they reach with their banks. But the most important part is that borrower has to prove to the bank that their earning has been hit due to Coronavirus. Banks have to come out with the restructuring plan by 31st December 2020. Rules and regulation of restructuring may differ from bank to bank.
What is SBI offering it its loan restructuring scheme?
-Moratorium of 24-month maximum- Your EMI will be differed by two yeras but you will be charged interest.
– Reschedule your instalment with a tenure extension of 2 years
Is your SBI loan eligible for restructuring?
SBI is the first bank which has come out with a plan for their borrowers who want to restructure their loans. Bank has launched an online tool on its website which will allow its customers to check their eligibility for loan restructuring. Once the customer logs in with their loan account number there will be an OTP validation and then a few question to confirm their eligibility. After going through your form banks will decide if your loan could be restructured and in what manner. This restructuring comes with a cost and borrowers have to pay an additional interest of 0.35% per annum over and above the interest of the loan. You need to make sure that your past record is spotless and you have not defaulted on any payments before 1 March 2020.
Your Eligibility will depend upon –
1)If your salary/income has dropped since February 2020
2)Reduction or suspension of salary due to lockdown
3)Loss of job
4)Closure of unit due to lockdown
On which loans you can avail restructuring?
1)Homeloan
2)Auto Loan
3) Education Loan
4)Personal loan
Paperwork for applying
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Salary slip of Feb 2020 and of the current month
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A declaration on estimated earning after the end of desired moratorium
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Incase of job-loss a letter of discharge from the workplace
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Statement of salary account
Last date for applying for this plan in SBI is 24th December 2020.
