The resurgence of the COVID-19 pandemic led to RBI announcing the Resolution Framework 2.0 on May 5, 2021 for helping small businesses, MSMEs and individual borrowers to tide over their financial concerns. HDFC Bank has announced the RBI-mandated personal loan restructuring framework and created this scheme to provide relief to eligible borrowers financially impacted by the 2nd wave of the COVID-19 pandemic.
Additional Reading: Can I Restructure My Personal Loan
Terms & Conditions for HDFC Personal Loan Restructuring (Covid-19)
This personal loan restructuring scheme relief offered to eligible borrowers to include
- A moratorium for EMI payments - up to a maximum of 24 months
- Rescheduling of EMI rescheduling or extension of loan tenure - up to a maximum of 24 months
- Recalculation of the EMI payable based on relief type availed by the borrower
To avail the HDFC Personal Loan Restructuring (Covid-19), key eligibility criteria of borrowers include
- Individuals and entities have to be classified as standard with HDFC Bank as of 1st April 2021.
- The borrower should have incurred a financial loss due to the Covid-19 pandemic. For instance, borrower should have seen a reduction or loss of income or cash flows during the Covid-19 pandemic 2nd wave.
- The borrower should have an account with the HDFC bank’s book as of 1st April 2021.
- The minimum loan amount that needs to be outstanding, to qualify for restructuring is Rs. 25,000.
Additional Reading: Hdfc Bank Loan Restructuring Offer For Borrowers Heres All That You Need To Know
Points to Remember:
- HDFC Personal Loan Restructuring (Covid-19) is a relief scheme as mandated by RBI to provide relief to eligible borrowers impacted due to 2nd wave of Covid-19 pandemic
- Preference will be given to those borrowers with a good repayment history, credit score and previous loan repayment track record.