- Loan Restructuring Facility: If there is a problem in paying installments during the Corona period, then you can take advantage of this new facility of RBI
- Restructuring facility is provided by the bank & it depends on case to case.
Many people lost their jobs in the Corona era. Due to this, he started having problems in paying the loan installment. In such a situation, the government had given the option of loan moratorium to give relief to the borrowers. The deadline for which is ending today i.e. 31 August. In such a situation, you will have to pay the installment on time from next month. If your income still has not increased or there is financial problem. So you can avail loan restructuring facility. This will reduce your monthly EMI. Which will reduce the burden on your package? So what is the loan restructuring facility.
Those borrowers who are having trouble due to coronavirus can take advantage of this facility. It also includes companies including personal lenders taking home loans, vehicle loans or personal loans.
If you are unable to pay the installment even after the loan moratorium is over, you can avail this facility from your bank. However, this bank will decide to whom it wants to give the facility. For this, they will check your loan profile. In restructuring you get the option to extend the loan deadline. Like- if you have already taken a loan, whose EMI is 10 thousand months. If you have not paid the installment for 4 months, then the bank will extend your 4 months in that 5 years. This will give you more time to repay the loan.
Difference between MI Moratorium and Loan Restructuring
The loan moratorium was exempted from non-payment of installment. However, whatever interest is created during this time, the bank adds it to your principal money. In such a situation, when you start paying EMIs again, you will have to pay the entire dues. Whereas in loan restructuring, you do not have to pay every month’s interest. This will only increase the loan term. So you will have to pay the installment for a longer period of time. But by doing this, your monthly EMI can also be reduced.
Who will get the benefit?
The advantage of loan restructuring is for all personal and corporate loans that are going through the current crisis. The Reserve Bank of India (RBI) has allowed restructuring the loans of only those borrowers who did not have a default of more than 30 days as on March 1, 2020. Older defaulters may not take advantage of this facility.
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