SBI releases eligibility conditions for restructuring of loans post EMI Moratorium

SBI Loan Restructuring Guidelines: While the six-month RBI EMI Moratorium scheme had ended on August 31, 2020, the resolution framework offered by banks is open for borrowers to restructure their loans. Those borrowers who are finding it difficult to pay the EMI’s on their home loans, car loans or personal loans, may avail the restructuring of the loan. The moratorium under this framework will be in addition to the moratorium granted by the banks earlier.

SBI has already initiated the process and one may apply for the restructuring of loans by visiting the bank’s website or approaching the bank branch. The State Bank of India, the country’s largest lender, has come out with a Restructuring Policy as per directives of the RBI with an aim to provide relief to its retail borrowers from the adverse impact of COVID-19.

For Smooth and hassle-free implementation of the Restructuring Policy, SBI today announced the launch of an online portal. The customers can check their eligibility for the restructuring of their loans through this portal sitting at their home/office or from anywhere as per their convenience and comfort.

However, not all may be eligible for this resolution and restructuring of their loans. One needs to check the eligibility as per the rules of the Resolution under this framework.

SBI’s retail customers upon logging in the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, the customer will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities. The restructuring process will be complete after verification of documents and execution of simple documents at branch/CPC.

There are two levels of eligibility – Borrower’s eligibility and the loan’s eligibility.

How to check borrower’s eligibility

A borrower will be considered as affected by Covid-19 pandemic, if any of the following conditions are fulfilled:

i. Your salary/income in August 2020 has got reduced when compared to February 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/businessmen

Loans Covered

Borrowers who have availed housing and other related Loans, Education Loans, Auto Loans (other than loans for commercial use) and Personal Loans can avail the restructuring scheme of the bank.

How to check loan eligibility

Even if you have any loan, not all loans may be eligible. 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, i.e. March 1, 2020.

ii. You should have been affected by Covid-19 pandemic and have met the conditions for borrower’s eligibility.

And, if you had taken a loan after 1st March 2020 but affected by Covid-19 pandemic, you will not be eligible for the restructuring of the loan. It is only those accounts that existed in Banks books on 01.03.2020, which are eligible for consideration under this Framework.

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