The outbreak of Global pandemic Covid-19 has impacted our lives. As an immediate relief measure, The RBI has released a framework (“Resolution Framework”) to lending institutions to offer resolution plans to mitigate the financial stress of the borrowers. In line with the Resolution Framework, we have implemented a restructuring plan in order to facilitate revival of activities.
We have provided below some of the frequently asked questions (FAQs) pertaining to restructuring of credit facilities.
- What is the meaning of restructuring in common parlance?
Restructuring is an act in which financial institutions grant certain measures to borrowers in times of economic difficulty. The measures may include, among others, change of repayment period, change in EMI etc. Restructuring is carried out as per the Guidelines issued by the Regulators.
- Will opting for the restructuring package have an impact on my credit bureau report?
As per RBI regulatory guidelines, your loan will be tagged as restructured on your credit bureau report.
- Will a settlement, which is done between the borrower and LoanTap, come under the purview of restructuring?
No, any settlement independently done earlier between the borrower and LoanTap will not come under the purview of restructuring.
- Will borrowers against whom LoanTap has initiated legal recourse for recovery of dues be eligible for restructuring?
No, these borrowers are not eligible for restructuring of their credit facilities.
- Whether credit facility(ies) disbursed after March 1, 2020 will be eligible for restructuring?
No, any credit facility disbursed after March 1, 2020 will not be eligible for restructuring.
- Once my loan is restructured, will I still be eligible to revert back to terms and conditions of the original loan?
No, once your loan is restructured you will not be able to revert back to the original loan payment structure or other terms and conditions. Restructuring is final and binding.