Friends, with the covid-19 going on, many people have to withstand the financial stress Someone has lost the job or someone’s pay has been cut
People are not getting their full salary With all this going on, we people have taken a loan and we cannot pay for its EMI
For that, the government has provided relief and given the 6 months moratorium period Which is ending on 31st August, In that, we didn’t have to pay our EMI, but the interest was accumulated and finally, we have to pay it
Because this moratorium period is ending on 31st August And the situation of the economy is not good yet Jobs have not come back yet and people have pay cuts also
With this, RBI has introduced a new policy called loan restructuring Pay attention here A moratorium is not extended here butBut a loan restructuring policy has been brought
And this will cover all corporates, MSME Means small businesses, and individuals Means retail consumers like you and me
So who is covered under this policy
What are its eligibility and other conditions?
With that, which monetary policy decisions did RBI take
Which will affect you and me
We are going to know them in this video, so please stay tuned with the video Press the bell icon while subscribing so that you’ll get the notification of the latest finance video
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Real estate series, and you will get all these things In our youtube playlist for free of cost Let’s start our video quickly In this video, we will mainly focus on individuals
Means on professionals and salaried class And with that small business owners I am sure the analysis of big corporates has already begun How do they have to restructure the loan?
Their work on this must have been started already But the individuals and Small business owners They do not get proper information sometime They don’t know how to take benefit from this sometimes
I will try to cover all these points in his video Let’s hope you will get some information from this video and if you are facing Some kind of financial stress, then this will help you
Before talking about loan restructuring, we will understand two key policy decisions Taken by RBI, the first decision is the interest rates are not changed
The key bank rates, repo rate, bank rate, reverse repo rate
They are kept the same because inflation had risen in last quarter So as many people were expecting that the interest rates on loans will be decreased
So that will not happen Other than this, the second decision that was taken was related to the gold loan Let’s say you take a loan against gold
So it’s not like you will get a loan for the full amount of gold
Let’s say you mortgaged gold worth Rs 1 lac You will get a loan of up to 75 thousand against that on today’s date This means the loan to value ratio is 75%
It has been increased to 90%, which means you will get up to 90000 Rs against the gold of 1 lac Rs Now we will talk about loan restructuring
So first we will learn how restructuring is different from a moratorium
See if you see in the past, a moratorium of 6 months has been given Which is going to end on 31st August In that, you did not have to pay the EMI
That means anyone can avail that
So in the latest policy, restructuring has replaced the moratorium Loan restructuring means that The loan can be restructured in any for This restructuring can be done with your loan amount
Let’s say you have not paid interest for some tim That interest can be added to your loan amount and increase your loan amount And that loan can be restructured to the loan amount
Second, how can be restructured, your EMI may be deducte Let’s say your pay has been cut and you can pay less EMI Then your EMI can be detected and your tenure can be increased
And along with this, you may be given a moratorium period also So now this maximum extension This means your maximum tenure or the maximum moratorium You can get a maximum of two years of extension
So we have understood what is a loan restructuring But the important thing is a condition Who can avail of this? So the first criteria are that only affected people can avail this
This means that if someone’s salary hasn’t been affected during covid
They cannot avail of this But if your job is lost or your pay has been cut Then definitely you can avail this Because earlier many people had opted mora
Who can pay the EMI, they opted that too
Then those people cannot opt for it no Bank will use its discretion here, so the power here has come to the bank In an earlier case, if you wanted to opt for the moratorium
Then you could go to the bank straight and apply for it because directions were from the government
But in this case, the bank will scrutinize every application We have to keep this thing in mind
But if we are facing financial stress then what is the problem with this?
We can go to the bank and show them our documents And can say my salary has been cut or we are not getting any salary If your case is genuine then you can go for the restructuring
With this, one more condition has been put her As of 1 March 2020, whoever’s loan was due for less than 30 days Only they can avail of this benefit
So if we understand this in simple language
The people who pay their loan regularly,
But their condition is not good due to covid
Or they have financial stress
This policy has been brought mainly for them
Other than this, you have to remember one more thing
You have to apply for loan resolution means the loan restructuring
You have to do it before 31 December 2020
This means you can apply for a loan restructuring by this time
And whatever the invocation date is, it should be implemented within 90 days of that
Other than that, bank staff cannot apply for this type of restructuring
So these were all the conditions of loan restructuring
But if you fulfill these conditions then you can apply for loan restructuring
Especially if you are in financial stress, then it will provide you relief
And on What types of loan is it applicable on?
It applies to all types of retail loan whether it is a home loan, car loan, personal loan
Education loan, whatever type of loan or loan against property
If you go to loan restructuring then your credit score will not be harmed
It will be considered a standard account
Other than this, I will discuss one or two point for small business owners
A restructuring policy came last year in June 2019 for MSME
It was continued or extended in February 2020
All those guidelines are extended again
The implementation date has been extended to 31 March 2021
So the MSME or small businesses can apply for a loan restructuring
But it should be implemented by 31st March 2021
The maximum loan amount here is 25 crores
For the loans that are below 25 crores, MSME can restructure them easily
All these conditions are almost the same for the corporates
But there is waiting involved in this
Because the big corporates have big loans
So they are approved by an independent agency
An Independent committee is formed
I don’t want to stretch the video for too long
We will not talk much about corporates
We have understood the conditions of individuals and small business owners
So if you are facing any type of financial stress
Then you can go to your bank and apply for a loan restructuring
I am sure if your financial situation is reflected in your salary slips or bank account
Then the bank cannot neglect it
I am sure you got some important information from this video
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