SBI launches portal to help retail customers with loan restructuring1 min read . Updated: 21 Sep 2020, 04:23 PM IST
- Retail customers will be offered a simple option to opt for 1-24 months of moratorium and reschedule the loans.
Mumbai: The country’s largest bank State Bank of India on Monday launched a portal within its website to enable its retail customers to check their eligibility for loan restructuring under the Reserve Bank of India scheme.
Speaking to the media, C.S. Shetty, managing director of SBI, said that retail customers will be offered a simple option to opt for 1-24 months of moratorium and reschedule the loans. Customers will also be offered a top-up home loan as a relief measure. The bank will, however, restructure loans based on the customer's assessment of future income.
“We would like to address those who had a temporary job loss and is likely to come back, maybe after 6, 8 or 9, 12 months or up to 24 months. We are completely relying on his own assessment because when he will get the job, it’s not in our hands," he said.
Shetty said that nearly 3,500 retail customers have accessed the portal and 111 customers have been found to be eligible for restructuring. Borrowers who avail of restructuring will be charged 0.35% more than other customers, he said. Last date to apply for restructuring is 24 December 2020.
According to RBI’s Resolution Framework for COVID-19-related Stress, the resolution of stressed personal loans will be available only to those borrowers who were repaying their loans regularly as on 1 March 2020.
Borrowers will need to get a resolution plan sanctioned before 31 December and the lender will need to implement it within 90 days. The restructured loan will continue to be considered as standard till the borrower sticks to the resolution plan.
Under the scheme, banks can reschedule the payments, convert interest into another credit facility, and provide moratorium of up to two years. The overall tenure of the loan can also be modified based on the resolution granted.