The meaning of loan restructuring in the simplest terms is the modification of an existing loan. The recent pandemic has affected millions across the nation. Many have lost their livelihood i.e., their jobs and their businesses. In many cases, individuals have had to take salary cuts or pay cuts with the silver lining of at least keeping their jobs. 

In order to provide relief to all those affected negatively due to the pandemic and reduce their financial stress; RBI has introduced many measures including loan restructuring. These measures are aimed to ensure that the borrowers are not burdened with the added strain of meeting their loan payments and the fear of penalties of default. 

Additional Reading: Rbis One Time Loan Restructuring Heres All That You Need To Know

Bajaj Finserv Personal Loan Restructuring Details

Bajaj Finserv is one of the many lenders that provides the benefit of loan restructuring on account of the Covid-19 pandemic. The loan restructuring facility is optional and is aimed at providing much-needed financial relief from the payment of EMIs. 

The moratorium on Bajaj Finserv personal loans due to Covid 19 is for individuals and businesses that do not have an aggregate exposure of more than Rs. 25,0,00,000 as on 31st March 2021. 

If eligible, customers can modify any of the following on their ongoing personal loan with Bajaj Finserv: 

  1. Rescheduling the EMI to be paid.
  2. Rescheduling or extension of the tenure of the loan up to a maximum of 2 years.
  3. Conversion of interest into a credit facility.
  4. Any other mode of restructuring at the discretion of the lender, based on the severity of the impact of Covid 19 on the borrowers.

If the borrowers do not wish to opt for this moratorium, then it is their choice. The relief measures under the personal loan restructuring are not mandatory measures and will vary from case to case basis.