Canara Bank Loan restructuring is available for personal loans, mid-corporate credit, MSME credit and large corporate credit. The benefit of loan restructuring is available to all the eligible borrowers of Canara Bank.
The eligibility for Canara Bank Loan Restructuring Scheme for personal loans is mentioned below.
- The loan has to be classified as ‘Standard’ before the Covid-19 pandemic as well as till the date the resolution of loan restructuring is invoked.
- The default on the loan should not be more than 30 days as of 1st March 2020.
- The borrower has to be negatively impacted due to the Covid 19 pandemic.
- It is the responsibility of branches or offices to undertake due diligence before identifying the borrower to be given relief under this scheme.
Additional Reading: Find Out Why Your Credit Score Wont Be Impacted If You Opt For Loan Restructuring
About Covid-19 Loan Restructuring
The government has introduced the loan restructuring option as a relief measure against the financial stress on the borrowers due to the Covid-19 pandemic. This pandemic has led many businesses to suffer huge losses, many to the point of even closing down.
The loan restructuring measures provide the benefit of lowering the EMI payments or extending the tenure of the loan depending on various factors like the income of the borrower, the loan amount due, the lender’s guidelines, etc.
Canara Bank is a leading name in the personal loan segments. The loan restructuring under Covid 19 pandemic will provide much-needed relief to the multiple eligible borrowers for a maximum period of 2 years.
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