State Bank of India (SBI) is now offering loan moratorium to its customers for upto 2 years under its loan restructuring scheme. The bank has also launched a facility on its website to help retail customers check their eligibility for one-time loan restructuring announced by the RBI. Personal, Auto, Home and eduction loans will fall under the loan moratorium offer by the SBI. This comes after the Reserve Bank of India (RBI) announced a one-time restructuring scheme for personal loan and corporate borrowers affected by coronavirus stress.
SBI loan moratorium for upto 2 years | All you need to know
- According to the Frequently Asked Questions (FAQs) put out by the bank on its website, a retail borrower who avails restructuring or moratorium will be required to pay additional interest of 0.35 per cent per annum for the remaining tenure of the loan.
- A borrowers, who has been affected by coronavirus pandemic and falling under below mentioned categories will be eligible for moratorium:
- Salary or income in August 2020 getting reduced compared to February 2020
- Reduction or suspension in salary during lockdown period
- Job loss/Closure of business
- Closure during lockdown or reduced activity of units or shops or business establishments in case of self-employed or professionals/businessmen
- The last date to apply for loan moratorium or restructring is December 24, 2020.
- According to the RBI's Resolution Framework for COVID-19-related Stress, only those retail borrower accounts shall be eligible for resolution which were standard, but not in default for more than 30 days as on March 1, 2020.
- "We would like to address those who had temporary job loss and are likely to come back, maybe after 6, 8, 9, 12 months or up to 24 months.
- Resolution under this framework may be invoked not later than December 31, 2020 and must be implemented within 90 days from the date of invocation.
- SBI has launched a facility on its website to help retail customers check their eligibility for one-time loan restructuring announced by the RBI.
- An eligible customer, however, will have to later visit the bank's branch for completion of other formalities such as signing of papers and others, he said.
- The bank's retail customer will be asked to fill their account number on the relevant segment on the bank's website.
- After completion of OTP validation and keying in the requisite information, customers will get to know their eligibility and receive a reference number.
ALSO READ | Rate cuts have not spurred investment; credit growth slow this year: SBI Chairman
ALSO READ | 7th Pay Commission: Salary cut of govt employees extended by 6 more months, leave without pay for 5 yrs
