HDFC Bank Lending Policy: HDFC Bank Loan Restructuring Policy 2.0: Terms & Conditions, Eligibility, Fees

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To help borrowers who are having difficulty repaying their loans, the Reserve Bank of India (RBI) has lent a hand in the form of loan restructuring.

In 2020, the RBI announced a loan restructuring program. And then in May 2021, due to the second wave of Covid-19, he announced a second resolution framework for many borrowers including individual borrowers.

Various banks have announced the terms of use of their 2.0 loan restructuring program. Click here to learn more about SBI’s Loan Restructuring 2.0 Guidelines.

Here is an overview of HDFC Bank Loan Restructuring Policy 2.0 FAQ according to the lender’s website.

  1. What is the RBI Approved 2.0 Restructuring Scheme?
    RBI has provided a framework for banks and lending institutions to implement resolution plans to deal with the economic fallout from the COVID-19 pandemic, which has caused significant financial stress for customers. Based on the regulatory framework and directives, your bank has defined its policy for restructuring the loan (s) of individuals and legal entities impacted by the COVID-19 pandemic.
  2. Who is eligible for restructuring?
    a) Individuals and Entities classified as Standard with the bank on April 1, 2021. b) The customer must be financially impacted by the COVID-19 pandemic in the form of reduction / loss of income or cash flow. c) Only accounts that appear in the bank’s book as of April 1, 2021 will be eligible. c) The reduction in revenue and its financial impact on the customer will be reviewed by the bank based on the documents / information provided which show the decrease in cash flow due to the impact of COVID-19. The bank will assess the viability of the customer to pay the restructured EMIs on the basis of the documents provided, before granting the restructuring. In addition to the viability calculations, the customer’s repayment history, credit bureau records, and customer responses while taking advantage of the moratorium earlier will also be factored into the restructuring decision.
  3. What products are covered by the regulatory restructuring relief program?
    * Credit card receivables * Auto and motorcycle loans * Personal loans (both personal and business / business use) * Personal loans to professionals * Student loans * Loans granted for creation / improvement of real estate (e.g. home loans) * MSME loans with Udyam certificate (Borrower must be classified as MSME by March 31, 2021 under Gazette Notification SO 2119 (E) of June 26, 2020)
  4. What types of loans are not eligible for restructuring?
    Loans to the following entities / individuals are not eligible for restructuring: – * individuals / entities for agricultural purposes and classified as agricultural loans by the bank * agricultural credit companies * financial service providers * central, state and local government agencies * HDFC Bank employees * Home finance company exposures that have already been rescheduled * Loans that have already been restructured once
  5. How can I take advantage of the restructuring benefit on my loan?
    You can visit the bank’s website for the request link, fill out the request form and submit the relevant details. Log in to the application form with your loan account number / credit card number / email id registered with the bank and the OTP sent to your mobile registered number / email. If you have changed your number, please make a written request to change the number to the nearest branch and apply after the number has changed on the system. You can also contact your Relationship Manager (RM).
  6. Can I apply more than once?
    No. You can only request a restructuring once.
  7. What are the restructuring options available to me?
    The term of the loan balance can be extended for an additional period of up to 24 months, including the moratorium period at the discretion of the bank to ease your monthly EMI repayment charge.
  8. Do I have to present documents to benefit from the restructuring allowance?
    The bank will ask you to submit documents giving details about the current state of your job or business. For salaried borrowers: * The payslips for the month of March 2021 and the last payslip for the last 2 months * A statement of estimated salary / income immediately after the end of the desired restructuring period (Maximum 24 months). * Letter of dismissal (in case of job loss) * Bank account statements from the account where the salary is credited in case of employees from October 2020 to date For borrowers / independent entities: * Bank statement of current account / CC April 1, 2020 to date * GST returns Oct-2020 to date * Income tax returns for FY-19 & FY-20 and FY-21 (if filed) * Income statement / Balance sheet Last 2 years * Udyam certificate * Declaration of independent professionals / businessmen declaring that their company is affected by Covid-19. Please keep these documents ready before applying on the link, as incomplete applications are unlikely to be processed.
  9. Will opting for the restructuring package have an impact on my credit bureau report?
    In accordance with regulatory guidelines, your loan / credit facility will be reported to the credit bureau as “restructured”.
  10. I have several loans / credit facilities with the bank. Do I have to apply separately for each of these loans?
    The restructuring request form will have the option of requesting one or all of the loans with a single request on the bank’s website. The bank will assess the application of regulatory guidelines, the impact of COVID-19 and the viability of the repayment plan before making a decision.
  11. I have a credit card with EMI plans within my credit limit. Can I opt for a restructuring of the card outstanding only and not of the EMI plans?
    The entire credit card balance, including loans within the credit limit, will be restructured and converted to a separate loan account.
  12. I have a Jumbo loan facility on my credit card. Is it mandatory to convert the Jumbo Loan if I choose to restructure the credit card?
    You can choose to restructure either the card balance, the Jumbo loan, or both.
  13. Will my credit card be blocked or deactivated if I take advantage of the restructuring plan?
    Your credit card will be deactivated without further notice once restructuring is approved for any of the loans / credit cards you have with the bank. The bank may choose to reinstate new limits at its discretion on the card after 12 months based on the repayment behavior of the loan IMEs.
  14. Is there an outstanding minimum requirement to benefit from the restructuring facility? V
    The minimum balance required to convert the outstanding card / loan is Rs. 25,000.
  15. I am a self-employed person / an entity having my small unit. Am I eligible for relief?
    Independent persons / entities are eligible for relief for both the MSME category and the Non-MSME category. The Bank would require its independent clients to register as MSMEs through the government’s Udyam portal, if applicable. Udyam portal link: https://udyamregistration.gov.in/Government-of-India/Ministry-of-MSME/online-registration.htm
  16. Can I request a restructuring now because I was not able to request a moratorium before?
    The restructuring regime is open to all of the bank’s customers regardless of the moratorium status applied, provided that the borrower complies with regulatory restructuring guidelines.
  17. I have already benefited from a restructuring. Can I take advantage of it again?
    If you have already benefited from a restructuring, you are not eligible for a restructuring under this scheme. However, if you did not take full advantage of the 24-month term extension under the previous program which ended on December 31, the bank may assess and provide relief to the extent of the overall extension of the term. duration of 24 months.
  18. My loan was taken out with a co-borrower (s). Will all co-borrowers of the original loan agreement be required to sign the revised restructuring agreement?
    In accordance with regulatory and legal requirements, all borrowers / co-borrowers of the original loan must accept and sign any change in the structure of the loan, including the restructuring agreement.
  19. What is the deadline for submitting applications via the portal.
    The link on the portal will be online until September 20, 2021 for clients with a single loan or an overall exposure of less than 25 Lakes.
  20. How long will it take me to know the status of the restructuring request?
    The bank will process and communicate the status of the request to customers within 10-14 business days.
  21. How will I get approval and communication for acceptance?
    The bank will communicate the status of the restructuring request by SMS or email to the registered phone number or email address.
  22. Will I need to make additional documents for the restructuring?
    For all loans, you will need to sign the restructuring agreement after approval from the bank to perform the restructuring. If you are the sole borrower, the bank will offer you digital options for signing the agreements. If there are two or more applicants on the loan structure, all applicants will need to agree to the terms by putting physical signatures on the application and the revised agreement, and this agreement will need to be submitted to the nearest customer service. Customer will receive a copy of the revised terms and amortization schedule on their registered mail / regular mail ID.


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