Taken loan from SBI? Here's how you can readjust your dues

State Bank of India (SBI) has introduced a loan restructuring policy with an aim to provide further relief to home and retail borrowers amid ongoing coronavirus crisis

State Bank of India State Bank of India

State Bank of India (SBI) has introduced a loan restructuring policy with an aim to provide further relief to home and retail borrowers amid ongoing coronavirus crisis. India's largest lender has launched an online portal, as per one-time relief guidelines of Reserve Bank of India (RBI), for the implementation of the Restructuring Policy. The public sector lender has also released a set of FAQs to answer the queries regarding who is eligible for restructuring and how the process will work. However, to avail the benefit, the borrowers will have to demonstrate that their income has taken a hit due to COVID-19 pandemic.

The facility provides for an extension of the moratorium period by a maximum of two years. Only the borrowers who had availed a home loan before March 1, 2020 and were regular with EMI payments until lockdown can avail the offer. Under the scheme, the borrowers get the benefit to not be classified as defaulters. However, they will have to pay an extra interest of 35 bps each year.

How to restructure your loan

The borrower will have to apply online on the website (

After logging in using the bank account number, completing the OTP validation process and feeding necessary information, the applicant will learn about his eligibility. He will also receive a reference number which will be valid for 30 days.

During these 30 days, the borrowers can visit the bank branch where his account is maintained and submit the application.

The process will be completed after verification of documents and execution of simple documents at the branch.

Who all are eligible

Any borrower whose salary or income in August 2020 has reduced as against February 2020.

A customer who has seen reduction or suspension in salary during the coronavirus lockdown period.

A borrower facing job loss or closure of business.

self-employed or professionals or businessmen seeing closure during lockdown or reduced activity of units or shops or business establishments.

Loans covered

Housing and other related loans

Education loans

Auto loans (other than loans for commercial use)

Personal loans

With SBI taking the lead in providing relief to borrowers amid coronavirus pandemic, other banks are also expected to join in soon. The moratorium scheme, which was introduced by the government to provide relief to borrowers from coronavirus pandemic, ended on August 31.

Recently, the Centre and the RBI through Solicitor General Tushar Mehta informed the Supreme Court that the moratorium on repayment of loans is extendable to 2 years. "We are in the process of identifying the distressed sectors to vary benefits as per the impact of the hit they have taken," Mehta said.  

On August 26, the apex court had observed that the Centre was "hiding behind the RBI" and had asked it to reply within a week on the issue of interest being charged on instalments which have been deferred under the central bank's scheme during the moratorium period amid COVID-19 lockdown.

Also read: No free lunches in SBI's loan restructuring; borrowers to pay extra interest