HDFC Bank is offering a moratorium of up to two years to retail borrowers under the loan restructuring scheme approved by the Reserve Bank of India. Those who have opted for credit card or EMI loans will also be eligible to apply for the one-time loan restructuring option. If you are unable to pay your credit card fees due to the coronavirus pandemic, the bank offers you the option to repay the loan.
Eligibility:
Individuals and entities that are classified as standard, but are not in arrears for more than 30 days with the bank as of March 1, 2020 and continue to be standard on all their loans or facilities to date are eligible for restructuring.
Those who have been affected by the COVID-19 pandemic will be eligible for the scheme. However, the bank will review the financial impact of the coronavirus on clients before granting the restructuring. Clients must send the necessary documents or information to the bank to request the consolidation of the loan. The bank will also assess the client’s viability to pay for the restructured EMIs. In addition to the feasibility calculations, the customer’s refund history will also be checked.
Credit card and loan EMI:
The customer will have the option to restructure the entire credit card balance, including loans within the credit limit. The amount will be converted into a separate loan account. You can also choose to restructure the balance of the card or the loan or both. Those who have opted for the HDFC Bank Jumbo Loan Facility will be able to restructure their loans.
A minimum outstanding balance required to convert the outstanding card or loan, the bank said. The limit is set at ₹25,000.
How to take advantage of the restructuring benefit:
The customer can visit the bank’s website to get the application link to complete the application form and submit the relevant details. They can also visit the closest HDFC branch for more details.
Required documents:
The client must send documents with details about the current status of their employment or business.
For salaried borrowers, pay stubs and bank statements may be required.
For Self-Employed Borrowers or Entities: Bank Statement, GST Returns, Tax Returns, Udyam Certificates, etc. may be required.
Effect on credit score:
Under regulatory guidelines, your loan or line of credit will be reported to the credit bureau as “restructured.” “According to regulatory guidelines, the restructuring must be reported at the borrower level to the credit bureaus and therefore all lines of credit or loans of the borrower with the bank will be classified and reported as ‘restructured’ even if borrower has accepted restructuring for a single loan, “HDFC Bank said in a statement.
Processing fees:
The bank may charge a fee if you choose to restructure your loan.
Can anyone request a restructuring now since they could not request a moratorium before?
The restructuring plan is open to all the bank’s clients, regardless of the applied default status, as long as the borrower complies with the regulatory guidelines for restructuring.
What types of loans are not eligible for restructuring?
-Loans to natural or legal persons for agricultural purposes and classified as agricultural loans by the bank
-agricultural credit companies
-financial service providers
-Central, state and local government agencies
-HDFC Bank employees
-Exposures to housing finance companies that have already been rescheduled
.
