SBI Loan Customers: Here's How You Can Apply For Loan Restructuring

After the KV Kamath committee's recommendation on loan restructuring have been largely accepted by the RBI, SBI for its retail loan borrowers is all set to launch a digital platform in all probability by the end of this month (September 24, 2020), enabling borrowers to apply for loan recast.

SBI Loan Customers: Here's How You Can Apply For Loan Restructuring

Customers as per the income stream expected and current and the bank's analysis may be able to figure out the timeline until which they can avail of moratorium benefit. Notably, as per the RBI guidelines, borrowers have been given the grant of again a moratorium of 6 months to 2 years time.

"We have 3 million housing loan customers; if anyone wants to check eligibility, it will be a total system driven automated process; we can't do this process manually," the publication quoted Rajnish Kumar, chairman, SBI as saying. "The system will check your current income and expected income in the next few months and basis that, it will suggest moratoriums of 12 months or two years for the customer. We are planning to roll this out by September 22-24."

As of June, the bank's 10% loan book was under moratorium and Kumar is of the view that not many shall apply for loan recast. But analysts view bulk of 90 lakh loan accounts to avail the facility. "As per the current payment trend I don't see a huge demand for restructuring; we have not received a single restructuring request from the corporate side so far, but I guess since the Kamath Committee contours only came last week, the companies may be assessing their eligibility," Kumar told the business daily.

Worth mentioning here that corporate and MSME customers for loan recast application need to visit the bank branch.

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