Apart from the EMI moratorium during the Covid-19 lockdown, you may get more respite on repayment of your personal loan-including home loan, car loan, education loan, gold loan, loan against securities, etc-if you have lost your job, suffered losses in your business or source of your income has dried up, as the Reserve Bank of India (RBI) has proposed a Personal Loan Restructuring scheme in its Monetary Policy Meet (MPC) on Thursday, August 6, 2020.
You may get benefit of the scheme in case you have taken the loan before March 31, 2020 and have not defaulted in paying any equated monthly instalment (EMI) till March 1, 2020.
“The stress resolution framework for personal loans announced by the RBI today would only apply to Personal Loan borrowers facing repayment difficulties caused by the pandemic. Personal Loan here will cover gold loan, education loan, home loan, personal loan, consumer durable loan, car loan and loan against securities. It will not include loans sanctioned for business and commercial purposes. Also, borrowers should note that loans in default for more than 30 days as on March 1, 2020 will not qualify for this plan,” said Naveen Kukreja – CEO and Co-Founder, Paisabazaar.com.
“Under the restructuring plan, banks can choose to reschedule loan repayments, convert any interest accrued or to be accrued into another credit facility, extend the loan tenure, or extend moratorium up to 2 years for the existing loans, depending on the current repayment capacity of the borrower,” he added.
“This should cover the bulk of the existing loans sanctioned to individual borrowers and help them repay their loans as per their changed repayment capacity caused by the current pandemic,” Kukreja further said.
So, in case the disruptions caused by Covid-19 pandemic have led to heightened financial stress for you, the personal loan restructuring would prove you a big respite.