Governor Mr/ Shaktikanta Das of Reverse Bank of India said today that it is difficult to repay loans in a timetable to offer restructuring solutions to borrowers. The new 2.0 options to restructuring are available to individuals and small businesses that have previously taken advantage of restructuring and have not yet benefited from restructuring.

Borrowers who had not benefited from the 1,0 restructuring could now profit from the 2.0 restructuring if the loan amount reached INR 25 crore. The loan is required to have a standard loan, which is on 31 March 2021 and should be revoked by all banks and credit institutes up to 30 Sept. 2021.

Even so, even borrower benefiting from restructuring 1.0 if the goal plan allows a moratorium of less than two years, the lending institutions may use this scope to modify such plans to extend the moratorium period to an additional 2 years. The remainder will remain unchanged.

Banks provide restructuring options and depend on the measurement of the principal remarkable, to the furthest limit of tenure one may grant the neglected principle. Nevertheless, the real restructuring will depend on the circumstances establishing the bank on a case-by-case basis.

The liquidity crunch continues during the Covid-19 pandemic and especially after the second wave, affecting individual borrowers in many areas of the economy. It may not be possible for all borrowers to start paying EMI on time. It is more intelligent to proceed to the money lender and request a restructuring of the loan for the RBI’s 2.0 circular regular releases.

Last updated 2 years ago