ICICI loan-restructuring scheme: ICICI Bank is offering a moratorium of up to two years to retail borrowers under the loan-restructuring scheme approved by the Reserve Bank of India (RBI). Those who have opted for credit card loans or EMIs will also be eligible to apply for a one-time loan-restructuring option. As per the FAQs issued by the bank on its website, an individual must meet the eligibility criteria to apply under the restructuring scheme as permitted by RBI. The last date to apply for the loan restructuring is on or before 18 December 2020. ALSO READ: Paytm’s IPL cashback plan is back: details here

Under loans to individuals, consumer loans such as Credit card outstanding balancesAuto loans (excluding loans for commercial usage), Secured personal loans (excluding loans for business purposes), Personal loans to professionals (excluding s loans for business purposes)

Additionally, home loans, education loans, loans taken by customers for investment in financial assets (shares, etc.)

Also, loans to entities (excluding borrowers classified as MSME and having exposure up to Rs 25 crore), loans against property, business installment loans, commercial cards, and auto loans are also eligible.

Last date for submission of loan restructuring request by the borrower

The borrower needs to submit a request for the restructuring of credit facilities on or before December 18, 2020.

What are the restructuring options available to the borrower?

After assessing the impact of the financial stress on the borrower, the bank may offer to extend the repayment period of the credit facility up to 24 months to help reduce the EMI amount of the borrower.

However, the application for the restructuring of the credit facility does not guarantee its acceptance. This is the beginning of the whole process. Once the borrower applies for the restructuring of the credit facility, the Bank will review the application on the basis of its internal policies. Thereafter, the Bank will communicate the acceptance of the application along with the terms thereof or the rejection of the application.

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What steps does the borrower need to take for availing restructuring credit facilities?

1. Submit an application for the restructuring of the credit facility along with required documents on the bank’s website or at a loan servicing branch.

The Bank will review the application and documents. It may thereafter offer a plan for restructuring the credit facility or it may reject the application. The Bank will inform the borrower about its acceptance or rejection of the application via SMS and/or e-mail.

2. The borrower needs to visit a loan servicing branch of the Bank to accept the resolution plan put forth by the Bank. The borrower will also need to submit further documents if any, as requested by the Bank.

It is important to note that the borrower is required to visit the loan servicing branch of ICICI Bank within 30 days from the date of intimation for completing documentation. If the borrower fails to submit the required documents within the stipulated period, the application would be canceled. In such cases, the borrowers will need to continue making the payment as per the original repayment schedule of the credit facilities).

Documents required

What are the documents to be submitted to ICICI Bank along with the application for availing of the restructuring facility?

For salaried individuals, updated salary slips from January 2020, up-to-date bank account statement from January 2020 for the account in which salary is credited, proof of loss of job from previous employer (in case of loss of job), applicant’s declaration of current unemployment, due to loss of job (in case of loss of job)

In case of self-employed individuals, bank account statements for the previous 12 months along with income documents as may be applicable, GST returns for H1 FY2020 and H1 FY2021

For loans to entities, last audited financial numbers for FY 2019, provisional/Audited financial numbers for FY 2020, projected financial numbers till FY 2022, GST returns (if applicable) / CA certified turnover (if GST not applicable) from April 01, 2019, up to date bank statements of the account, in which the entity is transacting from April 01, 2019.

Impact on credit score

The credit bureau status of the respective credit facilities of the borrower will be updated as “restructured”

Additional interest charged for restructuring of the credit facility

ICICI Bank says additional interest will be charged on credit facilities or loans which will be restructured.

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