“Resurgence of Covid-19 pandemic in India in recent weeks and the associated containment measures adopted at local and regional levels have created new uncertainties and impacted the nascent economic revival that was taking shape. In this environment, the most vulnerable category of borrowers are individual borrowers, small businesses, and MSMSEs,” RBI Governor Shaktikanta Das said in a speech.
How would it benefit borrowers and lenders?
Borrowers who owe an outstanding loan amount up to Rs 25 crore to lenders will be able to take advantage of this loan restructuring scheme.
Accounts that have been classified as Standard till March 31, 2021, will be able to take advantage of this scheme.
Those who have already received relief under previously announced by the RBI would not be able to take benefit of this scheme.
Under the loan restructuring scheme, lenders will be able to extend the tenor of the loan by up to 2 years. For this period, they can also offer a moratorium to the borrowers.
Borrowers who had restructured their loan amount under last year’s loan structuring scheme would be eligible for a moratorium of up to two years if they have not availed of moratorium benefits before.
Under a loan restructuring scheme, lenders will be able to review the working capital limits for small businesses.