Country’s largest public sector bank, State Bank of India, has launched an online website detailing information on retail loan restructuring. The bank has rolled out rules for loan restructuring after the Reserve Bank of India in its last monetary policy committee asked the banks to provide loan restructuring options to its loan borrowers.
As per the bank, retail loan customers can go to the website and use their new loan tool to check if they are eligible for loan restructuring under the scheme. The bank has also released FAQs related to the loan restructuring scheme. Depending on their eligibility, borrowers can request for a moratorium period of 1-24 months and can also request to extend their loan tenure. The moratorium scheme is offered on housing and other related loans, education loans, auto loans (other than loans for commercial use) and personal loans.
Here is how you can check if you are eligible for loan restructuring:
– Login to the bank’s website https://sbi.co.in to use their new loan tool.
– Enter your loan account number in the tool provided.
– To validate the account, an OTP will be sent your registered mobile number.
– You will be asked to provide a few necessary information.
– You will come to know of your eligibility after inputting all the information along with a reference number.
– You can use this reference number to complete the required formalities for loan restructuring within 30 days.
The bank will verify the documents before completing the restructuring process.
Who Is Eligible For Loan Restructuring?
Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on 1 March 2020, and their incomes are impacted by Covid-19.
The bank will restructure loans based on the customer’s assessment of future income. Borrowers who opt for restructuring will be charged 0.35% per annum over and above their current pricing for the remaining tenure of the loan, to offset the partial cost of additional provisions to be made by the bank. The last date to apply for restructuring relief is December 24, 2020.