Loan Restructuring News

Anshul Swami, Head Retail Inclusion and Rural Products, RBL Bank spoke at the Mint Money Conversation on the impact of loan restructuring on borrowers. He explained if the restructuring would affect the credit scores of borrowers. Swami also spoke on his expectations from the upcoming festive season. Watch the full video for all the details.

Many banks, including SBI and Federal Bank, have indicated that they do not expect a large number of borrowers to opt for the restructuring of loans.

Retail customers will be offered a simple option to opt for 1-24 months of loan moratoriumBorrowers who avail themselves of restructuring will be charged additional interest of 0.35% more than other customers

Many MSME units suffered severe hardships, including shutdowns and employee layoffs, due to demonetisation and introduction of a flawed GST regime

The restructuring of loans will help micro, small and medium enterprises , which are facing cash crunch in the wake of demonetisation and the GST implementation

RBI is allowing banks and NBFCs restructuring of MSME loans of up to 25 crore that were in default on 1 January, without having to mark them as NPAs

RBI has permitted a one-time restructuring of existing loans to MSMEs that are in default but 'standard' as on 1 January 2019

RBI's proposed MSME loan restructuring scheme may ease stress recognition timelines

Scheme for MSMEs with maximum loans of up to 25 crore will be subject to conditions that are necessary for 'ensuring financial stability', says RBI

Bad loan, which include NPAs, restructured or rolled-over loans, reached a record high of Rs9.5 trillion in the middle of last year before dipping slightly and prompting some relief among bankers