InvestorQ : What is the one-time restructuring scheme that the RBI has permitted in the case of loans personal loans? Is that a positive feature if I have a personal loan?
Debbie Mascarenhas made post

What is the one-time restructuring scheme that the RBI has permitted in the case of loans personal loans? Is that a positive feature if I have a personal loan?

Answer
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Crowny Pinto answered.
1 month ago


You are absolutely right. Apart from allowing businesses to opt for a one-time restructuring of their business loans, the RBI has in the latest policy also allowed individuals to restructure their personal loans. This will be subject to the approval of the bank but if you have been regular in your payments to the bank and have a clear credit track record, you can make the best of this facility.

Why is this facility important? It addresses the problem at two levels. Firstly, individual who are under stress will now be offered a one-time restructuring facility. Under this facility they will be permitted to restructure their loans on more favorable terms. But the most important takeaway is that it will not impact credit rating of the borrower or access to funds in any manner, whatsoever.

Whether you should opt for it or not would depend on whether you are genuinely under strain. It does come with a cost and that cost will come in the form of possible higher rates in the case of future loans. The restructuring only allows postponement of loans and not waivers. The bottom line is that if you are able to service the loan, then you should not ideally bother about restructuring.