Who can avail the loan restructuring scheme of HDFC Bank and what documents will be required? Know the whole thing

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Agricultural credit societies are classified as loans to individuals / institutions and agricultural loans by banks for agricultural purposes. The financial services provider (central, state and local government bodies) will be entitled to claim relief under MSME guidelines for restructured loans given for commercial use, as explained in point 12. HDFC Bank loan restructuring: corona virus epidemic. For the prevention of loans, loan moratorium was provided by the banks on the instructions of the Reserve Bank of India (RBI) during the lockdown implemented from March 25 in the country. Under this, the borrowers of banks were exempted from repayment (installment) of six months loan in two phases of three months, which expired on 31 August 2020. Now after the new RBI guidelines, the banks themselves have offered loan restructuring options to the borrowers by setting the terms and conditions. In this connection, private sector HDFC Bank has introduced the terms and conditions and eligibility rules of the debt restructuring process on its website.



The bank has issued a FAQ on its website for debt restructuring (after the end of compulsory moratorium of RBI), stating whether people are eligible to apply for debt restructuring. Whether or not he opted for a six-month moratorium between March 2020 and August 2020?

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The bank has issued a FAQ on its website for debt restructuring (after the end of compulsory moratorium of RBI), stating whether people are eligible to apply for debt restructuring. Whether or not he opted for a six-month moratorium between March 2020 and August 2020?

In addition, loans once restructured will be classified as restructured in the borrower’s credit report. The bank may impose fees on restructuring of loans. Also, will the debt once restructured be classified as “restructured” in the borrower’s credit report? Can bank levy restructuring of loans? Apart from this, the minimum outstanding amount of Rs 25,000 is required for converting credit card dues / loans.

There are detailed rules for applying for debt restructuring imposed by HDFC Bank as FAQ. These apply to the restructuring of retail loans like home loans, auto loans. Credit card balance etc.

1. What is the RBI approved restructuring plan?
RBI has provided a framework to banks and lending institutions for the implementation of resolution schemes to overcome the economic decline due to the Kovid-19 epidemic, which has caused significant financial stress for customers. As per the infrastructure and regulatory guidelines, your bank has formulated its policy for restructuring the loans of individuals / institutions affected due to Kovid-19 epidemic.



2. Who is eligible for reorganization?
a) Individuals and entities that have been classified as standard but have not defaulted with the bank for more than 30 days till March 1, 2020 and continue to remain standard in all its loans / facilities till date. is.

b) Customer is to be financially affected by Kovid-19 epidemic in the form of loss / loss in income or cash flow.

c) The reduction in the income of the customer and its financial impact will be reviewed based on the documents / information made by the bank, which shows the decline in cash flow due to the Kovid-19 effect. The bank will assess the feasibility of the customer to pay restructured EMI based on the documents provided before providing the restructuring. Apart from feasibility calculations, the repayment track record of the customer and the responses given by the customer while taking advantage of the first postponement will also contain facts in the restructuring decision.

3. How do I get the benefit of restructuring on my loan?
To fill the application form and submit the related details, you can visit the bank’s website for the application link. Alternatively, you can contact your RM. The link for the application will be updated soon.

4. What are the restructuring options available to me?
To reduce your monthly EMI repayment burden, the remaining term of the loan can be extended for a further period of maximum 24 months.



5. Do I need to submit any documents to avail restructuring?
The bank will have to submit documents giving details about the current status of your employment or business. Salary sleep and bank statements may be required for salaried borrowers. For self-employed borrowers / institutions – bank statements, GST returns, income tax returns, industry certificates etc. may be required. You can visit the bank’s website for the online restructuring application link, which will be updated soon.

6. Will electing a restructuring package affect my credit bureau report?
As per regulatory guidelines, your loan / credit facility will be reported to the credit bureaus as “restructured”. Please note that as per regulatory guidelines, the restructuring is to be reported to the lending bureau at the borrower level and hence all the facilities / loans of the borrower with the bank will be classified and reported as reconstructed. Even if the borrower has been restructured for only one loan.

7. If I reorganize my loan, will there be any process charge or other charges?
If you want to restructure your loan, the bank can charge a fee.

8. I have many loan / credit facilities with the bank. Do I have to apply for each of these loans separately?
The restructuring application form will have the option to apply for one or all loans by an application on the bank’s website. The bank will assess the feasibility of the repayment plan before applying the regulatory guidelines on Kovid-19 impact and deciding the same.

9. I have a credit card with EMI schemes within the credit limit. Can I opt for restructuring only outstanding cards and not EMI schemes?
The entire credit card balance, including the loan within the credit limit, will be restructured and converted into a separate loan account.



11. Is there a minimum arrear requirement to avail restructuring facility?
For converting credit card / loan arrears, a minimum outstanding amount of Rs 25,000 is required.

12. I am a self employed / small scale unit. Do I deserve relief?
As per the revised guidelines for MSME classification operated by the Government of India, self-employed individuals / entities falling under the MSME category can apply for relief under the MSME Reorganization Scheme. Please contact your RM for more information. The bank will request its self-employed customers to register themselves as MSMEs through the government’s enterprise portal, wherever applicable. Industry Portal Link: https://udyamregistration.gov.in/Government-of-India/Ministry/of-MSME/online-registration.htm

13. Can I now apply for reorganization as not being able to apply for moratorium earlier?
The restructuring plan is open to all customers of the bank, irrespective of the postponement status applicable to meeting the borrower to meet the regulatory guidelines of the restructuring.



14. What types of debt are not eligible for restructuring?
Agricultural credit societies are classified as loans to individuals / institutions and agricultural loans by banks for agricultural purposes. The financial services provider (central, state and local government bodies) will be entitled to claim relief under MSME guidelines for restructured loans given for commercial use, as indicated in point 12 above.

15. My loan was taken with the co-borrower / s. Will all co-borrowers of the original loan agreement be required to sign the revised restructuring agreement?
As per regulatory and legal requirements, all borrowers / co-borrowers of the original loan are required to agree and sign any change in the loan structure, including the restructuring agreement.

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