SBI kicks off restructuring of retail loans

MORATORIUM WILL be offered on housing and other related loans, education loans, auto loans (other than loans for commercial use) and personal loans. The bank will restructure the loans based on the customer’s assessment of the future income.

In line with the directives of the Reserve Bank of India (RBI), State Bank of India (SBI) on Monday announced a restructuring scheme for its retail borrowers, who were affected by Covid 19 pandemic. Other banks too are in the process of identifying retail loans that need to be restructured.

SBI has launched an online portal where its customers can check their eligibility for the restructuring of their retail loans such as home loans, auto loans, personal loans etc.

The portal is available on https://bank.sbi/ or https://sbi.co.in.

Customers, however, will have to approach SBI branches to complete the process. Under the resolution framework framed by RBI, borrowers whose loan accounts were classified as standard and have not defaulted for equal to or more than 30 days as on March 1, 2020, and their incomes have been impacted by Covid-19 are eligible for restructuring of their loans. However the restructuring will come at a cost.

SBI’s individual borrowers upon logging in the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, the customer will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities. The bank will assess applications based on whether borrowers have lost their jobs or seen incomes reduced or their business have been impacted as a result of the pandemic.

Retail customers will be offered a simple option to opt for a moratorium upto a maximum of 24 months or reschedule of instalments and extension of tenure by a period equivalent to the moratorium granted subject to a maximum of two years.