After the State Bank of India (SBI), HDFC Bank has offered its borrowers a loan restructuring scheme which is expected to provide them relief amid ongoing coronavirus pandemic. Basis the framework and regulatory guidelines set up by the Reserve Bank of India (RBI), the private sector lender has released its own set of terms and conditions or eligibility rules or loan restructuring process on its website.
Borrowers and entities that are classified as standard and are not in default for over 30 days with the bank as on March 1 can apply for the scheme. These borrowers should also continue to remain as standard across all their loans or facilities till date."The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring. Apart from the viability calculations, the repayment track record of the customer, and the responses given by the customer while availing moratorium earlier will also be factored in the restructuring decision," HDFC Bank said on the website.
Loans 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
How to avail loan
A borrower may visit the bank's website for the application link to fill the form and submit the relevant details. A customer can also contact his relationship manager (RM) at his bank branch.
The borrower can extend the balance tenure of the loan by a further period of a maximum of 24 months to ease the monthly EMI repayment burden.
The borrower is required to submit his documents with details about the current status of his employment or business. For salaried borrowers, salary slips and bank statements are required. For self-employed borrowers or entities, bank statements, GST returns, Income tax returns, Udyam certificate, etc. may be required.
The bank may levy a fee if the borrowers chooses to restructure your loan. The minimum outstanding balance required to convert the credit card or loan outstanding is Rs 25,000.
Impact on credit bureau report
As per regulatory guidelines, the loan or credit facility will be reported to the credit bureau as "restructured". "The restructuring has to be reported at a borrower level to the credit bureaus and hence all the facilities / 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 bank's website reads.