HDFC Bank Credit card EMI or loan restructuring: Eligibility, charges and how to apply

HDFC Bank is offering a moratorium of up to two years to retail borrowers under the loan-restructuring scheme approved by the Reserve Bank of India. Those who have opted for credit card loans or EMIs will also be eligible to apply for one-time loan-restructuring option. If you are unable to pay your credit card dues in the wake of coronavirus pandemic, the bank provides you loan recast option.

Eligibility:

Individuals and entities that are classified as standard, but not in default for more than 30 days with the bank as on March 1, 2020 and continue to remain as standard across all its loans or facilities till date are eligible for restructuring.

Those who have affected by COVID-19 pandemic will be eligible for the scheme. However, the bank will review the financial impact of coronavirus on customers before granting the restructuring. Customers need to submit necessary documents or information to the bank to apply for loan recast. The bank will assess the viability of the customer to pay the restructured EMIs as well. Apart from the viability calculations, the repayment track record of the customer will also be checked.

Credit card EMIs and loans:

Customer will have an option to restructure the entire credit card balance including the loans within the credit limit. The amount will be converted into a separate loan account. One may also choose to restructure either the card balance or loan or both the facilities. Those who have opted for Jumbo Loan facility from HDFC Bank, will be allowed to restructure their loans.

A minimum outstanding balance required to convert the card or loan outstanding, the bank said. The limit is set at ₹25,000.

How to avail the restructuring benefit:

Customer may visit the bank’s website for the application link to fill the application form and submit the relevant details. The can also visit the nearest HDFC branch for details.

Documents required:

Customer needs to submit documents giving details about the current status of their employment or business.

For salaried borrowers — salary slips and bank statement may be required.

For self-employed borrowers or entities — Bank statement, GST returns, Income tax returns, Udyam certificate, etc. may be required.

Effect on credit score:

As per regulatory guidelines, your loan or credit facility will be reported to the credit bureau as “restructured”. "As per regulatory guidelines, restructuring has to be reported at a borrower level to the credit bureaus and hence all the facilities or loans of the borrower with the bank will be classified and reported as “restructured” even if the borrower has taken restructuring for only one loan," the HDFC Bank said in a statement.

Processing fees:

The bank may levy a fee if you choose to restructure your loan.

Can anyone apply for restructuring now as was not able to apply for moratorium before?

The scheme for restructuring is open to all customers of the bank irrespective of the moratorium applied status subject to the borrower meeting the regulatory guidelines of restructuring.

What type of loans are not eligible for restructuring?

-Loans to individuals or entities for agricultural purposes and classified as agricultural loans by the bank

-agricultural credit societies

-financial service providers

-Central, State and local government bodies

-HDFC Bank employees

-Exposures to housing finance companies which have already been rescheduled