SBI launches online portal to restructure retail loans. Here's how you can apply

New Delhi: In a latest development, the State Bank of India (SBI) has launched an online portal where its customers can check their eligibility for the restructuring of their loans. The SBI's restructuring policy has come in accordance with the directives of the Reserve Bank of India (RBI) to provide a soothing balm to retail borrowers from the adverse effects of the COVID-19 outbreak.

After the launch of the online portal, customers are now able to check their eligibility for the restructuring of loans from the very comfort of their homes. After logging into the portal, SBI's customers shall be asked to input their account number. The customer, after inputting some necessary information, will be informed about their eligibility status and shall be given a reference number.

The reference number that the customers will receive shall be valid for a period of 30. The customers shall have to visit the nearest branch/CPC where the restructuring process shall be complete after the verification of a few documents.

With the launch of this portal, it has been expected that the customers will find it far more convenient to check their eligibility as they will be able to do it from the comfort of homes without having to visit a bank branch.

Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on March 1, 2020, and their incomes are impacted by COVID-19.

A borrower will be considered as affected by the COVID-19 pandemic if the salary/income in August 2020 is lesser than the amount received in February 2020. He/she will also be eligible if there is a reduction/suspension in salary during the lockdown period. Job Loss/closure of business, as well as the closure during lockdown/reduced activity of units/shops/business establishments in case of self-employed/professionals/businessmen, will also make one eligible.

Housing and other related loans, education loans, auto loans (other than for commercial loans), and personal loans shall be covered under this framework.

The approval of borrowers' loan restructuring application under this scheme - which is going to be governed by RBI guidelines - would be conveyed to them by the SBI branch/CPC.

The bank's customers will be issued an arrangement letter (in duplicate) stating the details of relief sanctioned under the framework and other terms and conditions.

He/she will have to return the duplicate copy duly executed and signed by all the signatories to the loan and also guarantors (if any) in token of having accepted the terms and conditions contained therein within 10 days.

The SBI has said that the last date for applying for this loan restructuring scheme is 24.12.2020.

Also Watch: Watch: What Arunachal Pradesh CM Does to Beat the Stress, Stay Fit