All you Need to Know About SBI's Latest Loan Restructuring Scheme


25 Oct 2020 | 5 min read

To relieve the borrowers affected by the Covid-19 pandemic, SBI has come up with a scheme for its loyal customers. After the RBI (Reserve Bank of India) permitted the one-time restructuring of both the corporate and retail loans amid the ongoing Covid-19 crisis, India’s one of the largest lender State Bank of India (SBI) followed the suit and launched an exclusive online portal for its borrowers dedicated to the loan restructuring. As per the SBI loan restructuring scheme, the moratorium time for all types of retail loans can be extended by a maximum of 2 years.  This means the borrowers will also have the option to reschedule their installments by extending the loan term by a period equal to the moratorium period.

Now you must be thinking about what is Moratorium Period? 

It is a period during which you don’t have to pay EMIs on the loan.

The exclusive launched online portal of SBI will be of great help to the borrowers affected by the COVID-19 stress. In this post, we will be showing some of the important aspects related to this loan restructuring scheme of SBI including benefits, eligibility criteria, required documents, etc. Keep on reading to know more about SBI’s latest loan restricting scheme.

 Features and Benefits of SBI Loan Restructuring Scheme 

Let’s start with the features and benefits the borrowers will get from SBI loan restructuring Scheme. With this scheme, the borrowers can choose for an additional moratorium period from the earlier Moratorium granted by the SBI. During this time, they don’t need to pay any EMIs on their loans provided they fit into the eligible criteria. Some of the other benefits are mentioned below, do have a look:

  • The primary aim of the SBI loan restructuring scheme is to provide financial relief to the borrowers facing difficulties because of the COVID-19 pandemic.
  • A borrower can opt for a maximum of 2 years loan moratorium
  • Through this loan scheme, a borrower can reschedule their installments and extend their loan period by a tenure equal to the moratorium granted by the Bank.
  • This loan scheme can only be used by those who have opted for a retail loan before March 1, 2020, and have made the regular EMI repayments till the said date. 
  • A borrower’s age and type of loan he has will play a crucial role in rescheduling the loan tenure
  • The borrowers can apply for the SBI loan restructuring scheme for more than one loan account. This means if one has both the SBI personal loan and SBI car loan, he can extend the tenure of both the loans.
  • If a borrower extends his/her loan tenure, this will lead to changes in the loan EMI amount. However, if a borrower has surplus cash at the disposal, he/she can keep paying the EMI as before to reduce the interest amount.
  • The eligibility criteria for the SBI loan restructuring scheme can be easily checked online. 

SBI Loan Restructuring Scheme Pricing Change

 When a borrower will apply for the SBI Loan Restructuring Scheme, there will be a change in the rate of interest of the loan for the remaining loan tenure. Now you must be thinking that what is the interest rate that SBI will charge on the restructured loan? Well, the borrowers will need to pay an additional rate of interest of 0.35% per annum over and above the current pricing. To understand it clear let’s, take an example:

Suppose you have a personal loan of Rs.4 lakhs for 5 years at an interest rate of 10.00% per annum. After opting for the SBI loan restructuring scheme, the new rate of interest will be 10.35% per annum (i.e.10.00 + 0.35) that you will need to pay, for the remaining loan tenure. Due to an increase in the rate of interest, the Equated Monthly Instalments (EMI) amount will also increase and so will the interest outgo.

Types of Loans Covered Under the SBI Loan Restructuring Scheme

It is important to know which loan is covered under the SBI loan restricting scheme while going for the extended moratorium. Here is the list showing all types of loans that will be covered under this loan scheme:



But it is not necessary that if you have opted for any of these loans, you can get an SBI loan restructuring scheme. Like any other loan scheme, this also has eligibility criteria. Like, to be eligible for loan restructuring, you should remember that your loan should be a ‘Standard Account’. To make it clearer let’s have a look at its eligibility criteria.

Eligibility Criteria for SBI Loan Restructuring Scheme

The borrowers affected by the Covid-19 pandemic will be considered eligible for this loan scheme only if they fit into the following conditions:

  • A borrower's monthly salary of August 2020 should be reduced as compared to the one he/she was getting in February 2020.
  • There is a reduction or suspension of the borrower’s salary during the lockdown period announced by the government.
  • This SBI scheme will be applicable for borrowers suffering from job loss or business closure after March 1, 2020.
  • A borrower affected by the pandemic but has taken a loan after March 1, 2020, will not eligible for the Loan Restructuring Scheme. Only borrowers whose loan accounts existed in the lender’s book on or before March 1, 2020, will be eligible.
  • If a borrower is a self-employed/ professionals/ businessmen borrower and it shut down during lockdown or reduced activity of units/shops/business establishments will be eligible for this loan scheme.
  • A borrower whose current salary has not been impacted but they might have to face an income loss in the future is also not eligible for this SBI loan restructuring scheme.

Documents Required for SBI Restructuring Loan Scheme

After finding that you are eligible for the SBI Restructuring Loan Scheme, next you will need to submit the following documents to apply for the same:

  • Current salary slips along with the salary slip of February 2020 
  • A declaration of the estimated income immediately after the end of the desired moratorium period (maximum of 24 months).
  • In  case of job loss, termination letter or letter of discharge from the Job
  • For Salaried employees: Statements of the salary account for the period from Feb 2020 till 15 days before the submission of application.
  • For self-employed borrowers: Statement of operating account for the period from Feb 2020 till 15 days before the submission of the application.
  • Self-employed Professionals or Businessmen declaration stating that their business has been affected by COVID-19.

How to apply for SBI Restructuring Loan Scheme?

Now is the time for the most important question i.e. how to apply for the SBI Loan restructuring scheme? Well, here are a few steps:

You can also apply by simply visiting the SBI branch where you have taken your respective loans from and complete the required formalities. Remember that the SBI loan restructuring process will be completed only after the document’s verification (which has been mentioned above).


We hope that this blog has provided you with the information you were looking for, and one more thing the last date for applying for SBI Restructuring Loan Scheme is 24.12.2020 (24th Dec 2020). 

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