Restructuring of personal loan

RBI has recently provided a one-time window of restructuring of loans due to the COVID-19 pandemic.Even the personal loan are allowed to be restructured. The condition for restructuring is that the loan should be standard and there should be no overdues as on March 1, 2020. All the Banks are going to provide more clarity on who is eligible for the same but for now it can be considered that someone who has lost his job or was not paid salary or someone who have faced steep salary cut will be eligible for the same. One has to apply for the same on or before December 31, 2020 and the Bank has to restructure the same within 90 days. Restructuring will be in the form of longer repayment schedule, lower interest rate. Individuals who are facing financial difficulties can utilize this window. However, one has to be prudent as longer repayment schedule along with last six months waiver provided by Government will only increase the interest burden. So, it would be better to pay off high cost debt rather then utilizing the restructuring option. If you enjoyed it don’t forget to share it with your friends and family through Whatsapp, Facebook and Twitter