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