1. What is the Loan restructuring scheme approved by RBI? 

To offer support to borrowers during the pandemic, RBI has announced relief measures for inpidual borrowers, small businesses, and MSMEs, who had availed loans with aggregate exposure of not more than INR 50 crore availed by you across all lending institutions as on March 31, 2021. In accordance with the framework and regulatory guidelines, the Bank has framed its policy for restructuring of loan/s of inpiduals and entities that have been impacted due to COVID-19. Borrowers will be required to apply for restructuring to avail a moratorium and/ or rescheduling of their payments. 

2. Who is eligible for restructuring? 

• Inpiduals who have availed loans including credit card outstanding, loans given for creation/enhancement of immovable assets (e.g., housing, etc.) for personal purpose
• Inpiduals and Entities including MSME that are classified as ‘standard’ and who have availed loans and advances of not more than INR 50 crore as of March 31, 2021, for business purpose
• The customer must be impacted financially by COVID-19 pandemic in the form of reduction/ loss of income or cash flows
• Only those accounts, which are on the RBL Bank’s book as on March 31, 2021, will be eligible
• The reduction of income and its financial impact on the customer will be reviewed by the bank, basis the documents / information provided which clearly reflects a reduction in cash flow due to the COVID-19 impact. 

The bank shall assess the financial capability of the customer to pay the restructured EMIs basis the documents provided, the repayment track record of the customer, credit bureau records etc.

3. Which are the products covered under the regulatory restructuring relief package? 

• Personal Loans (both for personal use and for business / commercial purposes i.e., business loans and small business loans) 
• Personal Loans to professionals 
• Credit Card outstanding (click here for Credit Card FAQs) 
• MSME loans with Udyam certificate (The borrower should be classified as MSME on March 31, 2021, in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020). Udyam may also be submitted before the date of implementation of the restructuring plan, failing which the restructuring shall not be carried out
• Loans given for creation/ enhancement of immovable assets (e.g., housing loans) 
• Education Loans 

4. What type of loans are not eligible for restructuring? 

Loans to the following entities/inpiduals are not eligible for restructuring under this scheme:

• Financial service providers 
• Central, State and local government bodies 
• RBL Bank employees 
• Exposures to housing finance companies which have already been rescheduled
• Loans which have already been restructured once
• Agricultural credit societies 
• Inpiduals/entities for agricultural purposes and classified as agricultural loans by the Bank except Loans sanctioned for agricultural allied activities viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture etc 

After assessing the impact of the pandemic on the financial condition of the borrower, banks may offer a moratorium or extend the repayment period. The decision is solely at the discretion of RBL Bank.

5. What documents do I need to submit to avail the restructuring benefit? 

The following documents may be required to review your restructuring application: 

For salaried borrowers: 

• Salary slips for the month of March 2021 and latest salary slip for last 2 months evidencing drop in / loss of salary
• A declaration of estimated salary/income immediately after the end of the desired moratorium period (Maximum 24 months)
• Letter of discharge from job (in case of job loss)
• Bank account statements of the account where salary is credited in case of salaried employees from October 2020 to date.

For self-employed borrowers/ entities:

• Current / CC account bank statement from April 01, 2020 till date
• GST returns October 2020 till date
• Income tax returns for FY-19 & FY-20 and FY-21 (if filed), Provisional Financials for FY 20-21
• Profit and loss statement / Balance sheet for the last 2 years
• Udyam certificate for MSME customers. If you have applied for Udyam Certificate, the restructuring shall be carried out only after the submission of the Certificate
• Declaration by self-employed professionals/ businessmen declaring that their business is affected by COVID-19.

During assessment, if necessary, bank may ask for further documents in-order to review the restructuring application

6. I hold multiple loans/credit facilities with the bank. Do I have to apply separately for restructuring of each of these loans? 

You can apply for restructuring of multiple loans/facilities under the same application. The Bank will assess the application as per regulatory guidelines, on the COVID-19 impact and the repayment capacity of the repayment plan before decisioning on the same. While processing your request the Bank may block your Credit Card (if present) from further usage. All accounts of the borrower must be restructured on the same day. Once an account / multiple accounts of the borrower are restructured then no further restructuring is allowed.

7. How can I avail restructuring under this framework? 

Eligible customers who would like to restructure their Loan accounts can write to: customercare@rblbank.com from their registered email ID, mentioning their loan account number with subject: Restructuring. Alternatively, you can call on our 24 x 7 customer service helpline no 022 6115 6300 or you can click here and fill the request form. If you only have a Credit Card then please refer to Credit Card FAQs for raising a restructuring request.  

Eligible customers who are serviced through Wholesale segment may get in touch with their Relationship Manager for any queries or assistance with reference to the restructuring Policy of the Bank. 

8. My loan was taken along with co-borrower(s). Will all the co-borrowers of the original Loan agreement be required to sign the revised restructuring agreement? 

As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan agreement need to agree and sign on any changes made in the loan structure including the restructuring agreement. 

9. How will I get the approval and communication for acceptance? 

The bank will communicate the status of the restructuring request vide text message or email on the registered phone number or email address. 

10. Does opting for the restructuring plan have an impact on the borrower’s credit profile? 

This may impact the borrower’s credit profile and consequently the loan eligibility, as credit profile is crucial in determining it. As per regulatory guidelines, Bank shall report restructuring to the credit bureau as “Restructured” or “Restructured due to COVID-19" on all accounts of the borrower with the bank even if one or more accounts may not be restructured. 

11. What is the last date for invocation of the restructuring plan? 

Bank can invoke the resolution plan until September 30, 2021. 

12. How long will the procedure take? 

The Bank will communicate their decision, in writing, to the borrower within 30 days from the date of receipt of application by the Bank. Once the Bank and borrower agree to proceed with the proposed resolution plan, then the resolution plan will be finalized and implemented within 90 days from the date of invocation of the resolution process. 

13. What is the meaning of invocation and implementation as per the resolution framework? 

The restructuring process shall be treated as invoked when the Bank and borrower agree to proceed with the plan. After finalizing the resolution plan, the Bank will then implement the plan. 

14. What happens if a customer becomes NPA between invocation and implementation? 

The account will be upgraded as “Standard” as on the date of implementation of the resolution plan. 

15. I have already availed of restructuring. Can I avail this once again? 

If you have already availed restructuring, you are not eligible for restructuring under this scheme. However, if you have not availed of the full benefit of 24-month tenor extension in the earlier scheme which ended on 31st December, the bank can evaluate and provide relief to the extent of overall tenor extension of 24 months. This is applicable to Inpiduals and Small business entities (not applicable for MSMEs). 

16. What are the support measures for Working capital limits where resolution plans were implemented previously? 

In respect of Small business borrowers (other than MSME) where resolution plans had been implemented in terms of the Resolution Framework – 1.0, Bank is permitted, to review the working capital sanctioned limits and / or drawing power based on a reassessment of the working capital cycle, reduction of margins, etc. without the same being treated as restructuring. 

However, the margins and working capital limits which has been modified shall be restored to the levels as per the resolution plan implemented under Resolution Framework – 1.0, by March 31, 2022.

In respect of accounts of MSME borrowers which were restructured earlier in terms of the MSME restructuring circulars, Bank is permitted to review the working capital sanctioned limits and / or drawing power based on a reassessment of the working capital cycle, reduction of margins, etc. without the same being treated as restructuring. 

The decision regarding this shall be taken by Bank by September 30, 2021. 

17. Is it mandatory for the borrowers to apply for Restructuring? 

No, borrowers who have the capacity to pay should continue to pay during this period to avoid the extra interest charges and tenor extension. 

18. Will I need to do further documentation for restructuring? 

For all loans, you would have to sign the restructuring agreement post approval from the Bank to effect restructuring. 

In case there are two or more applicants on the loan structure, then all applicants will be required to accept the terms by providing wet signatures on the application and revised agreement. This agreement will need to be submitted to the Bank’s representative. 

For grievance redressal pertaining to restructuring of your facility you may write to us at: loanrestructure@rblbank.com. You may refer to the Bank’s Grievance Redressal policy in the Bank Policies section on: www.rblbank.com