In the realm of re-structuring, there are many such measures that will enable the loan collector to repay it and the bank’s debt does not get stuck.
In the monetary policy review two days ago, the RBI announced the re-structuring of loans taken by industries as well as common bank customers. The loans of common people which will be re-structuring include gold loan, education loan, home loan, personal loan, consumer durable loan, car loan. It does not include loans taken for business or business purpose.
The Reserve Bank has said that those who have been continuously paying their debts since March 2020 can be given the option of re-structuring. This option will be given under the framework made by banks, which will be ready by 31 December. It will have to be implemented within 90 days. Is the loan restructuring at present and what will be its benefit to the borrowers? Let’s understand.
What is Loan Re-structuring In
fact, there are many such measures in the scope of loan re-structuring, which will enable the loan collector to repay it and the bank’s debt does not get stuck. That is, it benefits the customer, banks also avoid the problem of NPAs. Under loan restructuring, the period for repaying your loan can be extended. The repayment time or deadline can be changed to repay the loan. It can be re-scheduling. The loan interest can be converted into another loan with easy terms and then the moratorium period can be extended.
Loan restructuring makes it easier to repay the loan
In view of Kovid-19, on the instructions of the government, banks have ended the moratorium period on the loan. So if no one has given EMI during the period of the moratorium, then the accumulated interest during this period can be converted into a new loan, which will be easier to repay. So far, due to Moratorium, the person not paying EMI can also pay all the interest simultaneously. Or it can be added to the current installment. The bank may not change the EMI but can extend the repayment period.
