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Loan Restructuring 2.0 announced on May 05, 2021 – for Individuals, Small businesses and MSMEs

Below are the login
Who is eligible for restructuring? 
  • Individuals who have availed loans including credit card outstanding, loans given for creation/enhancement of immovable assets (e.g., housing, etc.) for personal purpose
  • Individuals and Entities including MSME that are classified as ‘standard’ and who have availed loans and advances of not more than Rs. 50 crore as of March 31, 2021, for business purpose
  • The customer must be impacted financially by COVID-19 pandemic in the form of reduction/ loss of income or cash flows
  • Only those accounts, which are on the RBL Bank’s book as on March 31, 2021, will be eligible
  • The reduction of income and its financial impact on the customer will be reviewed by the bank, basis the documents / information provided which clearly reflects a reduction in cash flow due to the COVID-19 impact. 

The bank shall assess the financial capability of the customer to pay the restructured EMIs basis the documents provided, the repayment track record of the customer, credit bureau records etc.

3. Which are the products covered under the regulatory restructuring relief package? 
  • Personal Loans (both for personal use and for business / commercial purposes i.e., business loans and small business loans) 
  • Personal Loans to professionals 
  • Credit Card outstanding (click here for Credit Card FAQs) 
  • MSME loans with Udyam certificate (The borrower should be classified as MSME on March 31, 2021, in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020). Udyam may also be submitted before the date of implementation of the restructuring plan, failing which the restructuring shall not be carried out
  • Loans given for creation/ enhancement of immovable assets (e.g., housing loans) 
  • Education Loans 
4. What type of loans are not eligible for restructuring? 
Loans to the following entities/individuals are not eligible for restructuring under this scheme:
  • Financial service providers 
  • Central, State and local government bodies 
  • RBL Bank employees 
  • Exposures to housing finance companies which have already been rescheduled
  • Loans which have already been restructured once
  • Agricultural credit societies 
  • Individuals/entities for agricultural purposes and classified as agricultural loans by the Bank except Loans sanctioned for agricultural allied activities viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture etc 

After assessing the impact of the pandemic on the financial condition of the borrower, banks may offer a moratorium or extend the repayment period. The decision is solely at the discretion of RBL Bank.

5. What documents do I need to submit to avail the restructuring benefit? 
The following documents may be required to review your restructuring application: 
For salaried borrowers: 
  • Salary slips for the month of March 2021 and latest salary slip for last 2 months evidencing drop in / loss of salary
  • A declaration of estimated salary/income immediately after the end of the desired moratorium period (Maximum 24 months)
  • Letter of discharge from job (in case of job loss)
  • Bank account statements of the account where salary is credited in case of salaried employees from October 2020 to date.

For self-employed borrowers/ entities:

  • Current / CC account bank statement from April 01, 2020 till date
  • GST returns October 2020 till date
  • Income tax returns for FY-19 & FY-20 and FY-21 (if filed), Provisional Financials for FY 20-21
  • Profit and loss statement / Balance sheet for the last 2 years
  • Udyam certificate for MSME customers. If you have applied for Udyam Certificate, the restructuring shall be carried out only after the submission of the Certificate
  • Declaration by self-employed professionals/ businessmen declaring that their business is affected by COVID-19.

During assessment, if necessary, bank may ask for further documents in-order to review the restructuring application