Yes, personal loans can be restructured as per the relief plan offered by the RBI. The Reserve Bank of India recently announced a one-time restructuring plan to provide relief to individual borrowers struggling because of the pandemic. This restructuring option is available till the end of 2020 with some terms and conditions.
Restructuring is available for retail loans including personal loans, educational loans, consumer credit, home loans, loans given for investment in financial assets as per the RBI’s guidelines. According to the RBI, loans that are classified by lenders as standard, but not in default upto 30 days as on 1st of March 2020 are eligible for restructuring.
This relief can’t be availed after Dec 31st and must be implemented within 90 days of the invocation. The relief could include items such as conversion of any interest accrued, or to be accrued into another credit facility, rescheduling of payments, or granting of moratorium, based on an assessment of income streams of the borrower, subject to a maximum of two years.
This relief was very necessary and helpful since during the lockdown many individuals lost their jobs, faced loss of income and other financial problems almost freezing the economic activities.