The 2nd Covid-19 wave saw many borrowers facing financial crunch. To help borrowers meet their financial exigencies, RBI brought forth Resolution Framework 2.0, to be mandated by lenders including banks and financial institutions, on 5 May, 2021.
As per this mandate of RBI, YES Bank now offers the option of personal loan restructuring (Covid-19) to eligible borrowers severely impacted by the pandemic.
Additional Reading: Can Personal Loans Be Restructured
Terms & Conditions for Yes Bank Personal Loan Restructuring (COVID-19)
The bank’s restructuring framework provides relief to eligible borrowers, which may include some or all of the below features based on case-to-case basis, after ascertaining the financial impact faced by the borrower.
- Moratorium on payment of principal, interest and EMI instalment, up to a maximum period of 24 months.
- Rescheduling of EMI rescheduling or Extension of loan tenure, up to a maximum of 24 months.
- Revision of interest.
- Converting outstanding or interest to another facility.
- Recalculation of the EMI payable and tenure on the basis of the type of relief availed by the borrower.
Additional Reading: How To Avail Yes Bank Emi Moratorium
Key eligibility criteria for availing Yes Bank’s Personal Loan Restructuring (COVID-19)
- Individuals who have taken personal loans for personal use from YES Bank, which excludes credit facilities provided by the Bank to its own staff/personnel.
- Individuals who have taken the loan/ advance for their business purpose. Under such a case, aggregate exposure from all the lending institutions of this business should not have exceeded Rs. 50 crores as of 31st March 2021.
- Small businesses, including retail and wholesale trade, apart from MSMEs, whose aggregate exposure does not exceed Rs. 50 crores from all lending institutions, as of 31st March 2021.
- Borrower has to be classified as ‘Standard’ by YES Bank as of 31st March 2021.
Points to Remember:
- Opting for YES Bank Loan Restructuring (Covid-19) is optional.
- It entails high interest costs at the end of the moratorium period. So borrowers, who have the capability to repay their loans, should continue making their EMI payments as per their original schedule