The State Bank of India had previously launched an online tool that helps borrowers know the details of the COVID-19 resolution scheme. Now, HDFC Bank has launched FAQs on its website concerning the details of a one-time loan restructuring scheme launched as part of RBI’s (Reserve Bank of India) resolution framework for the COVID-19 hit loans.
Frequently Asked Questions (FAQs) contains details on eligibility to avail the scheme and the procedures to be followed. It also contains information about the different options concerning the restructuring scheme. Previously, SBI had also launched an online facility to assist borrowers to know about the resolution scheme for the COVID-19 hit loans. Most of the banks are likely to come out with similar details on their websites soon.
According to the information available on the website, entities, and individuals 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 facilities/loans till day are eligible for restructuring. A condition that the banks keep is that the customer has to be impacted financially by the COVID-19 in the form of loss of income or cash flows.
The Bank will check the eligibility of the customer to pay the restructured EMIs on basis of the documents provided, before granting the restructuring. Apart from the eligibility assessment, the repayment record of the customer and the responses given by the customer while availing moratorium previously will also be factored in the restructuring decision.
The balance tenure of the loan can be extended to a maximum of 24 months to reduce the customer’s monthly EMI repayment burden. The bank will impose a charge to the borrower who avails the scheme. Customers can access the bank’s website for the application form and submit the relevant details. They can also approach the relationship managers. The bank will shortly put out the link for application on its website. The borrower must strictly submit documents showing the current status of his/her employment or business. For borrowers who are salaried, their salary slips and bank statements may be required. For self-employed entities/ borrowers, they would have to submit – GST returns, bank statement, income tax returns, Udyam certificate, etc as per the requirement.