The State Bank of India (SBI) recently launched an exclusive online portal for retail borrowers to restructure their ongoing loans. It aims to provide additional relief to borrowers during these trying times. This is as a result of the financial impact resulting from the novel coronavirus pandemic. The bank has listed out a set of FAQs for answering borrowers' queries with regards to eligibility criteria for loan restructuring facility and also detailing the process of the same.

SBI’s additional moratorium or loan restructuring can be availed for a maximum of two years and the last date of application for this scheme is 24.12.2020. Loans that are taken post 1.3.2020 are not eligible for this scheme. SBI customers must note that the bank will compare their salary slip through February 2020 against August 2020 for verifying their eligibility for loan restructuring. In this article, we list out the key features to know while availing SBI Loan Restructuring. 

What is the SBI loan restructuring plan?

The relaxations offered by SBI under the loan restructuring framework include a moratorium of maximum 24 months, rescheduling of instalment payments and also tenure extension of same as the moratorium granted for a maximum of two years. While the bank offers a moratorium period, customers must note that the interest continues to accrue in their loan account. The bank decides on the loan restructuring terms after reviewing each application and once agreed by the borrower. These can be changed later on, at the discretion of the bank.

Additional Reading: Everything You Need To Know About RBI Loan Restructuring

How to avail loan restructuring from SBI?

The one-time loan restructuring facility from SBI can be requested online or by visiting one of the bank’s branches. This restructuring facility is over and above the EMI moratorium scheme which ended on August 31, 2020. Borrowers can rejoice since anyone can choose this facility and not just those who availed the earlier 6-month moratorium scheme launched in March 2020. The last date for application as per the resolution framework of the bank is December 24, 2020.

For availing the loan restructuring facility, SBI’s retail clients can log in to the official portal and enter the requisite details including their account number. The bank will require OTP validation, post which, few other details have to be entered. Customers can know their eligibility and get a reference number post this step.

The reference number as provided by the bank is valid for 30 days. Within this time, customers must visit the bank branch for completing additional formalities. The loan restructuring process is complete post verification of all documents and also execution of basic documents submitted at branch/CPC.

The portal will show “provisional eligibility” upon the completion of the above steps. The bank branch will then request the customer to submit other documents as per specific requirement or for clarity purposes etc. The decision taken by the bank branch is considered final as far as eligibility of the applicant is concerned.

Eligibility Criteria for SBI Loan Restructuring

Borrowers who are facing a financial crunch due to the ongoing COVID-19 pandemic are eligible for SBI loan restructuring provided they meet the below-mentioned conditions:

  • The salary/income of the applicant in August 2020 should have decreased as compared to February 2020.

  • Decrease or complete suspension of salary as a result of COVID-19 lockdown.

  • Borrowers who have lost their jobs or experienced closure of the business.

  • Closure due to lockdown/ decrease in the activity of establishments/shops/business units for self-employed individuals/professionals/businessmen.

Additional Reading: HDFC Bank Loan Restructuring Offer for Borrowers

What are the documents required for SBI loan restructuring? 

The following documents must be uploaded (for individuals applying online) or furnished with the application form at the applicant’s home branch.

  • Salary slips of Feb 2020 along with latest salary slip.

  • Declaration stating estimated salary/ monthly income expected post the end of the moratorium period (Maximum period is 24 months).

  • Discharge letter from the previous job (for job loss cases due to pandemic).

  • Account statements of the salary account for salaried employees or account statement of Operating Account for businessmen/self-employed individuals/ professionals. The statement must be from Feb 2020 up to 15 days before submission of application.

  • Self-declaration by self-employed individuals/ businessmen stating that their business has been impacted by Covid-19.

SBI bank processes all such applications within 7-10 working days from submission of the application. After the eligibility criteria has been checked and established, and once the relief is sanctioned, the applicant must execute the remaining formalities. Applicants are issued an Arrangement Letter with details of relief granted as per the bank’s framework and all the relevant terms and conditions. The duplicate copy has to be returned duly signed by all the parties to the loan and in case any guarantors are involved. This is a token of accepting all the terms and conditions. The same has to be submitted within 10 days. 

How is the interest calculated on restructured SBI loans? 

If an applicant is eligible for loan restructuring, he/she does not have to pay loan EMIs during the moratorium period granted. However, it is important to note that the interest rate is still applied during such a moratorium period. To reduce interest burden during a 2-year moratorium, applicants can continue to pay with any surplus funds available. This will help in lowering the interest accrued throughout the moratorium period.

SBI customers who opt for the moratorium can avail a recalculated EMI as per the extension. The loan tenure is extended based on the moratorium period sanctioned. The EMI to be paid post moratorium is recalculated by the bank. It is not just the EMI recalculation but also the pricing of the loan changes if the moratorium is availed. Individuals who avail the loan restructuring facility will have to pay 0.35 % additional interest on top of the current prices for remaining loan tenure. The bank does not charge any processing fee so that no additional financial burden is experienced by borrowers.


Customers who have availed housing loan, auto loan, education loan or even personal loan from SBI can apply for loan restructuring to get relief from any ongoing financial stress due to COVID pandemic. The bank has made all necessary provisions to assist customers in providing this facility.