SBI retail customers will be prompted to enter their account number when logging into the portal. After completing the OTP validation and entering some necessary data, the customer will know their eligibility and will receive a reference number. This reference number will be valid for 30 days and within which customers may visit the branch to complete the required procedures.
CS Setty, Managing Director (Retail and Digital Banking), SBI expressed the hope that with the launch of this portal, customers will find it operationally convenient to verify their eligibility before going to a branch.
Under this RBI-framed resolution framework, such borrowers are eligible whose loan accounts were classified as standard and were not in default for equal or more than 30 days as of March 1, 2020, and their income is affected by Covid-19 .
Retail customers will be offered a simple option to opt for a 1-24 month moratorium. The moratorium will be offered on home and other related loans, education loans, auto loans (other than business loans), and personal loans.
The bank will restructure the loans based on the client’s assessment of future income. Borrowers who take advantage of the restructuring will be charged 0.35% more than other clients. The last date to request restructuring is December 24, 2020.
Here are the frequently asked questions:
1. 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.
2. 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:
me. Your salary / income in August 2020 decreased compared to February 2020
ii. Salary reduction / suspension during the lockdown period
iii. Loss of job / business closure
iv. Closure during closure / reduced activity of units / shops / commercial establishments in the case of freelancers / professionals / entrepreneurs
3. What are the Loans covered by this Framework?
The following loans are covered by the Framework:
me. Home and related loans
ii. Education loans
iii. Auto loans (other than business loans)
iv. Personal loans
4. Are all loans in the previous categories eligible?
No. To be eligible under the Framework, the following eligibility conditions must be met:
me. 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.
5. Am I eligible if I have taken out 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.
6. 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.
7. How to request relief under the Framework above.
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.
8. What are the documents that must be uploaded / sent during the application?
Copies of the following documents need to be uploaded (if applied 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.
9. Until what date can I request a repair under the Framework?
The last date to apply for exemption under the Framework is December 24, 2020.
10. What are the reliefs / relaxations available under the Framework?
The following relief / relaxation measures may be sanctioned under the Framework subject to compliance with banking regulations:
me. Moratorium of up to a maximum of 24 months.
ii. Rescheduling of fees and extension of tenure for an equivalent period
to the moratorium granted subject to a maximum of 2 years.
11. What is the moratorium?
During the moratorium period, you do not have to pay EMI for the loan.
12. Will interest be applied during the moratorium?
Yes.
13. Will the aforementioned moratorium be added to the moratorium already granted by the Bank due to stress related to Covid-19?
Yes, the moratorium sanctioned under this Framework will be in addition to the moratorium previously granted by the Bank.
14. 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.
15. 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.
16. 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.
17. Will there be any 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.
18. Would you be eligible for additional loan services under the Framework?
Not.
19. May I request relief under this Framework for more than one account?
Yes, you can request relief under this Framework on more than one account.
20. 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.
21. Will I be ineligible for any other loan 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.
22. Should the eligibility reflected in the portal be considered a sanction from the bank for the restructuring of my loan?
No. The portal will reflect “provisional eligibility.” Your branch may ask you to submit any other documents as required or for clarity etc. The decision transmitted by your branch will be final to the extent that your eligibility to be considered for relief under this framework.
23. How many days will the Bank take to process the request?
Normally, the Bank will endeavor to process your request within 7-10 business days after the request is submitted.
24. Will I have to pay a processing fee for the exemption extension?
Not.
25. What documents must I execute after the sanction of reparation under 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 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 10 days.
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