SBI details personal loan restructuring rules

State Bank of India detailed the process and rules he would like to follow when the country’s largest lender initiates a personal loan restructuring approved by the Reserve Bank of India.

The bank launched a website on Monday where borrowers can check their eligibility and upload relevant documents. This preliminary review would be followed by review and approval at the industry level.

According to a number of published FAQs, the bank will evaluate applications based on whether borrowers have lost their jobs or reduced their incomes due to the Covid-19 crisis. Should customers pass this test, they may be eligible for an extension of the term of their loan with a corresponding change in their monthly installments or EMIs.

However, this would come at a cost.

CS Setty, managing director at SBI, said the bank has received many more personal loan restructuring inquiries. The bank is expanding its reach to ensure that borrowers move ahead sooner rather than later to avail the program.

When asked if personal loan restructuring would affect a borrower’s creditworthiness, Setty said he was unsure. “I can’t comment on whether it will affect creditworthiness. It’s a very strange situation. Our view is that it should not be influenced. “

The most important aspects of the bank’s FAQs are set out below:

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