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In line with RBI’s one-time relief, the scheme is out there to borrowers who had availed of an equity credit line before March 1, 2020, and was regular in repayments until the Covid-19 lockdown.

But the borrowers will demonstrate that their income becomes hit due to the pandemic.

The country’s largest lender has been the primary to roll out a protocol for restructuring retail borrowers who were laid low with Covid-19. Other lenders, including HDFC and ICICI Bank, are expected to imitate before the top of the month.

To facilitate borrowers to know their eligibility for restructuring, SBI has launched a web portal to enable borrowers to check their retail loan eligibility. This includes homeloans, education, automobile, and personal loans.

The restructuring will give breathing space for a borrower until their income is normalized or they get re-employed. Also, they shall not become classified as defaulters or non-performing assets.

The downside is that the bank will charge 35 basis points extra as interest since the RBI needs them to line aside additional provisions for these loans.

This suggests that despite initial relief over the loan’s tenure, the borrower will find yourself paying over on an everyday loan without restructuring.

HDFC Bank has put in situation to a facility to submit online applications. The bank has said that it’ll report the loan to the agency as ‘restructured,’ and as per norms, all loans availed becomes classified as restructured whether or not just one loan is restructured.

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