The Corona Pandemic has affected the health of individuals and created havoc in the finances of the nation. Thus, to uplift individuals' condition and provide them with more funds, a personal loan has been restricted by RBI accordingly. Further, we will look into details regarding the restructured framework of personal loans.
To ease the financial stress caused by the pandemic The Reserve Bank of India (RBI) had allowed banks to offer a loan moratorium of 6 months on EMI facility, which had lasted till 31st August 2020. This moratorium period was offered to all the borrowers, but it couldn’t work for an indefinite time. Thus, to help these borrowers cope with the situation by setting some guidelines towards a grant relief policy. Further, we will look in details at the restructuring policy of a personal loan:
The restructured framework of personal loans is now available for almost all borrowers willing to avail it.
According to the RBI, a borrower is considered eligible for the new restructured facility, only if the loan was outstanding for not more than 30 days, since 1st March 2020.
A borrower who has cleared all his loan EMIs and has a standard loan can easily avail of this restructured facility.
On the other hand, individuals having a loan overdue for more than 30 days or becoming an NPA (Non-Performing Assets) before the due date will not be allowed to use this RBI facility.
One could avail of this facility even if he/ she availed of the previous loan moratorium facility.
Lastly, a borrower is considered eligible for this particular facility of rescheduling loans or converting outstanding interest rates into different credit facilities. This option is available till 31st of December, 2020.
This proposal of RBI’s loan restructuring has been made keeping in mind the pandemic situation. Thus it is only to be availed by individuals who had been impacted financially due to the pandemic situation. A salaried individual struggling to keep his/her family feed can avail of this restructured loan option. This restructured loan is also suitable for any self-employed individual trying to kick start his old business policies. Further, as this facility is only provided to individuals facing a financial crisis due to the pandemic circumstances, one must prove this fact by giving documents supporting the context. For this purpose, a borrower can submit papers related to the termination of a service or a copy letter of a salary cut, proving your real circumstances, thereby letting you avail of this restructured facility.
Before granting this loan facility to an individual, the lender will check his/her credit history and will also make sure that the individual is worthy of the credit that is to be granted. In case there are any faults in your credit history or any unpaid account of debt, then the lender might refuse to grant you the loan. Otherwise, this restructured personal loan is for everyone to avail who can not cope with the given circumstances.
Personal loans have been a blessing when there has been an immediate need for cash during emergencies and are more suitable, as there are no collateral requirements. You can apply for HDFC personal loan to get the best set of benefits. Furthermost of the banks and NBFCs have a suitable offer and assistance under a personal loan scheme. These loan funds can be used for various purposes, including personal reasons and business-related growth.
However, an individual might utilize this loan facility. Still, when it comes to repayment, one should deposit the money before the particular due date to lower the CIBIL score. If it is your first time in the market of personal loans, it is suggested for you to seek advice and help understand this scheme's procedure.
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