Restructuring Scheme by RBI


What is the restructuring scheme approved by RBI?

Restructuring Scheme is a resolution framework that RBI has advised lending institutions to implement to address the stress faced by customers due to economic fallout on account of COVID-19 pandemic. Within the guidelines issued by RBI, ABFL has framed a policy for restructuring the loan(s) of individuals and entities that have been economically and financially impacted only on account of the COVID-19 pandemic.

Who is eligible for restructuring?

Individuals and Entities that are classified as Standard, but not in default for more than 30 days with the ABFL as on March 1, 2020 and continue to remain as standard across all its loans till date are eligible for restructuring. 

The customer has to be impacted financially by the COVID-19 pandemic in the form of reduction or loss of income or cash flows. 

Loan has to be for personal use.

ABFL will assess the reduced cashflows and viability to service the Restructured EMIs before sanctioning restructuring. Discussion with the customer, assessment of documents and overall repayment track of the customer will impact the decision of ABFL in granting restructuring. 

What type of loans are not eligible for restructuring?

Loans to individuals/entities for

agricultural purposes and classified as agricultural loans by the bank 
agricultural credit societies 
financial service providers
Central, State and local government bodies 
ABFL employees
Exposures to housing finance companies, which have already been rescheduled 

Loans given for commercial usage will be entitled to claim relief under the MSME guidelines as explained in point (MSME restructuring for total exposure <25 crs).

For corporate borrowers (>25 cr ) the restructured guidelines have been issued at consortium level.

How do I avail the restructuring benefit on my loan?
You may write to our customer service team with the requisite documents, as specified below, on:
care.finance@adityabirlacapital.com if you had applied loan though offline mode.
care.digitalfinance@adityabirlacapital.com if you had applied loan though online mode.

What are the restructuring options that are available to me?
The balance tenure of the loan can be extended by a maximum period of 24 months to reduce the monthly EMI. 

Do I need to submit any documents to avail of the restructuring benefit?
ABFL will require you to submit documents giving details about the current status of your employment or business. For Salaried / Self-employed borrowers - bank statements, ITR, GST returns may be required. Additionally, ABFL team will reach out to you to have a discussion on the overall cash flows.

Will opting for the restructuring package have an impact on my credit bureau report?
As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”. Please note that as per regulatory guidelines, restructuring has to be reported at a borrower level to the credit bureaus and hence all the facilities / loans of the borrower with the bank will be classified and reported as “Restructured” even if the borrower has taken restructuring for only one loan.  

Will there be any processing fees or charges if I restructure my loan?
ABFL may levy a fee if you choose to restructure your loan.

I hold multiple loans with ABFL? Do I have to apply separately for each of these loans?
This facility can be availed only once and hence you will need to apply for restructuring all the facilities in one go.

Is there a minimum outstanding requirement for availing the restructuring facility?
Minimum outstanding balance required to convert the loan outstanding is Rs. 25,000 across all facilities.

I am self-employed/ MSME unit. Am I eligible for relief?
Self-employed individuals/entities falling under the MSME category as per the revised guidelines for MSME classification rolled out by the Government of India, can apply for relief under the MSME restructuring scheme. You may contact your Relationship Manager or Customer service team (details mentioned above) for more details.

Can I apply for restructuring if I had availed/ not availed Moratorium?
The scheme for restructuring is open to all customers of the bank irrespective of the moratorium status, however the restructure decision will be at sole discretion of ABFL 

Will all borrowers/ co borrowers need to be apply for restructure or only borrower can apply for restructure option?
As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan need accept the revised terms and conditions of the loan including accepting the terms of addendum to the main loan agreement. 

What is the last date of application for restructuring?
You may apply latest by 15th December, 2020, so that the restructuring decision and documentation closure can be closed out by the regulator stipulated deadline of 31st December,2020.




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care.finance@adityabirlacapital.com

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