Personal Loan restructuring is a way of helping the people affected by the recent Covid-19 pandemic. The restructuring provides relief in paying the EMIs due. Under this moratorium, relief can be provided in the following manner.
- Moratorium and/or extension of loan tenure of up to 24 months.
- Conversion of the interest accrued to the loan account as well as a portion of the debt into equity, marketable and non-convertible debt securities.
- Rescheduling the EMI payment or Re-assessing the working capital
Additional Reading: Is Loan Restructuring Different From Loan Refinancing Find Out Now
The benefits of IDFC person loan restructuring are available to select borrowers. The details of the eligibility for this moratorium are mentioned below.
- The applicant needs to apply for a loan for personal use and such loan has to be applied on or before 31st March 2021.
- Small businesses like retail or wholesale traders (except those classified under MSMEs) as per 31st March 2021 or individuals having a loan for business purposes will be eligible provided the overall exposure is not over Rs. 25,00,00,000.
- The individual or the business has to be impacted due to Covid-19
- The credit extended to the individual is classified under the ‘standard’ category by the lender as of 31st March 2021.
- The individual has been adversely affected due to the pandemic in the form of business reduction (volumes or revenue), job loss or salary cuts or suspension of salary.
Additional Reading: Can I Restructure My Personal Loan
IDFC First bank has provided the benefit of restructuring to many eligible borrowers which have given them much-needed relief in these economically trying times due to the pandemic. The moratorium can be extended maximum for a period of 24 months and the actual amount of relief is different from a case-to-case basis.