Banks have started the process of restructuring loans up to Rs 25 crore to help small enterprises affected by the second wave of the coronavirus pandemic.
Banks have started the process of restructuring loans up to Rs 25 crore to help small enterprises affected by the second wave of the coronavirus pandemic. The move is in line with the COVID-19 relief measures announced by the Reserve Bank of India (RBI) earlier this month. Several banks have got the approval of the Board of Directors for the resolution framework and are approaching the eligible borrowers in this regard.
Bank of India has sent messages to its eligible customers informing their willingness to go for online loan restructuring. In these difficult times, we are offering relief for your help as per RBI Resolution Framework 2.0 released on May 5, 2021, the message said. If you are under financial stress due to COVID- second wave, you can opt for restructuring your account.
Banks started this work
Meanwhile, another public sector bank Punjab and Sind Bank said that the loan restructuring plan has been approved by the board of directors as per the directions of RBI. Bank’s Managing Director S Krishnan said, We will reach out to our customers through Bank Representative (BC). This will give us an idea of how many customers want to take advantage of the restructuring in the next few days.
BOI presents Restructuring Package for COVID related stressed accounts under Resolution Framework 2.0 pic.twitter.com/b10MWvMVea
— Bank of India (@BankofIndia_IN) May 29, 2021
Those with loans up to Rs 25 crore will get the benefit
MSMEs, people and small traders have been most affected by the second wave of the COVID-19 epidemic. Taking cognizance of the current situation, the Reserve Bank announced the Resolution Framework 2.0. Under this, individuals and small businesses with loans up to Rs 25 crore can opt for loan restructuring. Provided that he had not taken advantage of the earlier scheme.
In the case of those who had availed loan restructuring under the previous scheme, the RBI allowed banks and lending institutions to modify the schemes and extend the moratorium period to help ease the pressure.
Explain that the benefit of the new Resolution Framework 2.0 can be given to those individuals/entities whose low accounts were good till March 31, 2021. Under this new system of loan resolution, applications can be given to banks till September 30. This scheme will have to be implemented within 90 days of this.
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