SBI released eligibility conditions for loan restructuring by the borrowers, Know the details
Biznextindia : While the RBI loan moratorium scheme has ended on 31st August, there is still a window open for the borrowers, who are under stress due the COVID-19 related difficulties, to restructure their loans.
Earlier this month, the RBI, based on the recommendations of an expert committee headed by K.V.Kamath, has allowed the banks to provide a window under the Prudential Framework to implement a resolution plan in respect of eligible corporate exposures without change in ownership, and personal loans, while classifying such exposures as Standard, subject to specified conditions.
State Bank of India, India’s largest lender on Monday released eligibility conditions for loan restructuring by the borrowers. Cm
How does a borrower know that he/she is eligible for Resolution under this framework?
A borrower will be considered as affected by Covid-19 pandemic, if any of the following conditions are fulfilled:
i. Your salary/income in Aug 2020 has got reduced when compared to Feb 2020
ii. Reduction/suspension in salary during lockdown period
iii. Job Loss/closure of business
iv. Closure during lockdown/reduced activity of units/shops/business establishments in case of self-employed/professionals/
Which are the Loans covered under this Framework?
The following loans are covered under the Framework:
i. Housing and other related Loans
ii. Education Loans
iii. Auto Loans (other than loans for commercial use)
iv. Personal Loans
Are all the Loans under above categories eligible?
No. To be eligible under the Framework, the following eligibility conditions need to
be fulfilled:
i. Your loan should be a “Standard Account” as on the date of application for
relief under this framework and should have been ‘standard’ and also not in
default for more than 30 days as on 01.03.2020.
ii. You should have been affected by Covid-19 pandemic and fulfil any of the conditions stated in FAQ No.2 above.
Please click here to find the detailed Eligibility conditions.