The aim of offering loan restructuring is to provide relief to those borrowers who have suffered unfortunate circumstances like lost their job or whose businesses have not revived or those who have suffered a considered loss in their business. The benefit of opting for a loan restructuring plan is that the borrower may be able to reduce the amount of the EMI or get a moratorium on the loan principal repayments with the hope that the financial situation improves.

While loan restructuring offers immense temporary relief to borrowers, there are multiple downsides to loan restructuring. The borrower will have to pay a higher cost, including additional interest and fees; duration of repaying the loan will also comparatively increase. Hence, it is a wise choice to not opt for a loan restructuring facility if the borrower has the ability to repay the EMIs on time.

Additionally, experts say those who are not facing any liquidity crunch and have enough money, should not opt for loan restructuring and rather repay their loans on time, as per the existing repayment schedule.