SBI restructuring retail loans: The country’s largest bank State Bank of India on Monday launched a portal within its website to enable its retail customers to check their eligibility for loan restructuring under the Reserve Bank of India scheme. Also read: SBI ATM cash withdrawal rules change from today: Here’s how to use the OTP-based withdrawal facility
Speaking to the media, C.S. Shetty, managing director of SBI, said that retail customers will be offered a simple option to opt for 1-24 months of moratorium and reschedule the loans. Customers will also be offered a top-up home loan as a relief measure. The bank will, however, restructure loans based on the customer’s assessment of future income.
“We would like to address those who had a temporary job loss and is likely to come back, maybe after 6, 8 or 9, 12 months or up to 24 months. We are completely relying on his own assessment because when he will get the job, it’s not in our hands,” he said.
SBI’s retail customers upon logging in the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, customers will come to know their eligibility and receive a reference number. This reference number will be valid for 30 days and within those 30 days customers can visit the branch to complete the required formalities.
The restructuring process will be complete after verification of documents and execution of simple documents at branch/CPC.
According to SBI Managing director CS Shetty, around 3,500 retail customers have accessed the website, of whom 111 were eligible for restructuring, CNBC TV 18 reported.
According to Shetty, borrowers who will avail the scheme will be charged 0.35 per cent more than other customers, the TV channel reported.
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According to RBI’s Resolution Framework for COVID-19-related Stress, the resolution of stressed personal loans will be available only to those borrowers who were repaying their loans regularly as on 1 March 2020.
Borrowers will need to get a resolution plan sanctioned before 31 December and the lender will need to implement it within 90 days. The restructured loan will continue to be considered as standard till the borrower sticks to the resolution plan.
Under the scheme, banks can reschedule the payments, convert interest into another credit facility, and provide moratorium of up to two years. The overall tenure of the loan can also be modified based on the resolution granted.
According to the SBI press release, the bank’s retail customers upon logging in the portal, i.e. https://bank.sbi/ or https://sbi.co.in, will be asked to key in their loan account number.
Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on March 1, 2020, and their incomes were impacted by COVID-19. The approval of borrowers’ loan restructuring application under this scheme – which is going to be governed by RBI guidelines – would be conveyed to them by their SBI branch/CPC.
