The State Bank of India (SBI) has launched an online portal for retail borrowers seeking further relief from their Equivalent Monthly Installment (EMI) repayments of loans due to the novel coronavirus pandemic. In addition to launching the portal, the bank has also published a set of frequently asked questions to answer borrowers’ inquiries about who is eligible to apply for loan restructuring and how the process will work.
The rules, which are mentioned in detail below, clarify that any new moratorium can be for a maximum of two years and that the last date to request this loan restructuring plan is 12/24/2020. What’s more, loans taken after 1.3.2020 will not be eligible for this renewal scheme even if the borrower’s finances are affected by the pandemic.
Additionally, SBI will compare your February 2020 payroll to August 2020 to determine your loan restructuring resolution eligibility among other eligibility criteria.
- What is the purpose of this resolution framework?
The purpose of this Framework is to provide relief to borrowers affected by the Covid-19 pandemic. - How do I know that I am eligible for a resolution in this framework?
A borrower will be considered affected by the Covid-19 pandemic if any of the following conditions are met: i. Your salary / income in August 2020 decreased compared to February 2020 ii. Salary reduction / suspension during lockdown period iii. Loss of employment / business closure iv. Closure during closure / reduced activity of units / shops / commercial establishments in the case of freelancers / professionals / entrepreneurs - What are the loans covered by this framework?
The following loans are covered by the Framework: i. Home and related loans ii. Education loans iii. Auto loans (other than business loans) iv. Personal loans - Are all loans in the above categories eligible?
No. To be eligible under the Framework, the following eligibility conditions must be met: i. Your loan must be a “Standard Account” on the date of request for compensation under this framework and must have been “standard” and not in arrears for more than 30 days as of 03.01.2020.ii. It should have been affected by the Covid-19 pandemic and meet any of the conditions set out in FAQ # 2 above. - Am I eligible if I have obtained a loan after March 1, 2020 but have been affected by the Covid-19 pandemic?
No, only those accounts that existed in the Bank books on 03/01/2020 are eligible to be considered under this Framework. - My current income is not affected, but I anticipate a loss of income in the future. Am I eligible for a restructuring based on future lower income?
Not - How to request help in the above framework?
You can submit your application online on our website (www.sbi.co.in). The application will be validated through an OTP that you will receive on your mobile number. Alternatively, you can also visit the branch where your account is maintained and submit your request. - What are the documents to upload / send during the application?
Copies of the following documents must be uploaded (if applying online) or submitted together with the application form at the branch of origin. me. Pay slips for the month of February 2020 and current / most recent pay slip. ii. A statement of estimated salary / income immediately after the end of the desired forbearance period (maximum 24 months). iii. Dismissal letter from work (in case of job loss) iv. Account statements of the account where the salary is credited in the case of salaried employees or operating account statement in the case of entrepreneurs / self-employed / professionals for the period of February 2020 up to 15 days before the submission of the application. v. Declaration of professionals / self-employed entrepreneurs who declare that their business is affected by Covid-19. - Until what date can I apply for relief under the framework?
The last date to request exemption under the framework is December 24, 2020. - What are the reliefs / relaxations available under the frame?
The following relief / relaxation measures may be sanctioned under the Framework subject to compliance with banking regulations: i. Moratorium of up to a maximum of 24 months. ii. Rescheduling of fees and extension of tenure for a period equivalent to the moratorium granted, subject to a maximum of 2 years. - What is the moratorium?
During the moratorium period, you do not have to pay EMI for the loan. - Will interest be applied during the moratorium?
yes - If the moratorium mentioned above will be in addition to the moratorium already granted by the bank previously due to stress related to Covid-19?
Yes, the moratorium sanctioned under this Framework will be in addition to the moratorium granted by the bank previously. - If I have excess cash during the moratorium, can I pay the EMIs during the moratorium?
Yes, it depends on you. This will help reduce the amount of your interest. - What is the maximum age up to which the loan term can be extended?
This is product specific. For example, in the case of a home loan, the term of the loan can be extended up to a maximum of 24 months or until the primary borrower turns 77, whichever comes first. In any case, the loan tenure can only be extended up to a maximum of 24 months in this framework for stress related to Covid -19. - Will there be any change in EMI?
Yes. Because of the forbearance granted, your loan tenure will be extended for the forbearance period and the EMI payable after the forbearance will be recalculated and advised to you. - Will there be a change in the price of my loan?
Yes, you will be required to pay an additional interest of 0.35% per annum above your current price for the remaining period of the loan, in order to offset the partial cost of the additional provisions that the bank must make. - Would I be eligible for additional loan services under the framework?
Not - Can I request relief under this framework for more than one account?
Yes, you can request relief under this Framework on more than one account. - One of my loan accounts at SBI is irregular for more than 30 days as of 03.01.2020. Can I qualify for relief under this framework for another loan account that was standard and met the eligibility criteria under clause 4 above?
Yes, accounts that meet the eligibility criteria would be eligible for relief under this framework. - Will I be ineligible for any other loans during the moratorium period granted under the framework?
No. However, your eligibility for any other loan will depend on the eligibility standards prescribed for the bank’s respective loan scheme, as applicable from time to time. - Should the eligibility reflected in the portal be considered as a bank sanction for the restructuring of my loan?
No. The portal will reflect “provisional eligibility.” Your branch may ask you to submit any other documents based on requirements or for clarity, etc. The decision transmitted by your branch will be final to the extent that it meets the requirements to be considered for repair under this framework. - How many days will the bank take to process the request?
Typically, the bank will endeavor to process your request within 7-10 business days after the request is submitted. - Will I be required to pay a processing fee for the extension of relief?
Not - What documents should I execute after the relief sanction in this framework?
You will be issued a Letter of Settlement (in duplicate) stating the details of the repair sanctioned under the Framework and other terms and conditions. You must return the duplicate copy duly executed and signed by all the signatories of the loan and also guarantors (if any) as a sign of having accepted the terms and conditions contained therein within a period of 10 days.
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