One Time Loan Restructuring Advisory

Here are the basic eligibility criteria for loan restructuring:

1. The applicant must not have been more than 30 days overdue on EMI/Interest payment as on Mar 01, 2020. This period is 89 days for MSME loan borrowers with borrowing from banks and NBFCs/HFCs below Rs. 25 crores.
2. Applicant must have been impacted financially in terms of loss or reduction of income / cash flows due to the COVID-19 pandemic.

Please note that:

1. The reduction in income and its financial impact on the applicant will be reviewed by SMFG Grihashakti based on the information as well as supporting documents provided by the borrower.
2. We will then assess the ability of the applicant to be able to resume payment of revised EMI/interest agreed upon based on the discussions and evaluations prior to approval of resolution plan.
3. We will also consider the applicant’s repayment history, and the responses given while availing the RBI moratorium between Mar – Aug, 2020.

If you can pay off your monthly EMIs by finding new sources of income or by managing your expenses, we would strongly advise you to do so, and not opt for the scheme needlessly.

This is because loan restructuring has the following effects:

1. The loan account will have to be reported to the bureau as “Restructured”, which will show on your credit report
2. There will be an increase in overall interest payable, thereby making your loan more expensive
3. An additional loan restructuring fee may be levied, adding to your cost

If your loan restructuring request gets accepted, one or more of the following may happen:

1. Your monthly EMI amount may be reduced, thereby reducing monthly repayment commitment.
2. Your overall tenure will increase, during which the remainder of your loan can be paid off. However, please note that the extension of the residual tenor of the loan, with or without payment moratorium, cannot exceed 24 months
3. Your total interest payable over the loan tenure will increase.

No. If you don’t apply for this scheme, or if your application gets rejected, you will be expected to pay your EMIs as per the schedule. Any delay or failure to do so will be considered as a delay/ default and attract penalty/ bounce charges.

You can apply for loan restructuring. However, we will assess your application based on the criteria mentioned above as well as other factors such as credit worthiness etc. and then let you know if your loan restructuring request meets the requirement of the Company’s Policy.

The following products* of SMFG Grihashakti are eligible for this scheme:

1. Loan Against Property
2. Home Loans
3. Commercial property loans
4. Home improvement loans
5. Home extension loans

*Products will be considered for restructuring as per the framework and guidelines provided by the RBI for this scheme.

To apply for loan restructuring scheme, please follow the steps below.

1. Click on the “Contact Us” section on the top of the page
2. Select “Existing customer” and enter your details such as LAN ID, mobile number, etc.
3. Select “One Time Loan Restructuring ” from ‘Nature of Query/Request/Complaints’ dropdown
4. Next, select “One Time Loan Restructuring” option from the ‘More details’ dropdown.
5. After that you will be asked to provide certain information such as the nature of your employment, the level of financial impact you have faced (or continue to face) due to the pandemic, and more.
6. Please enter the above information as carefully and accurately as possible. Your request will be evaluated for further processing based on the information you provide here.
7. Once you have entered all the necessary details and verified the same, click on “Submit”
8. If your application is deemed eligible as per the policy, you will receive a call from our representative regarding further steps.

Please note that final eligibility will be determined after submission of required documents and their subsequent verification by Grihashakti.

Here is the list of documentation for loan restructuring:

For salaried borrowers:

1. Salary slips and bank statements from Feb – Aug, 2020
2. In case of co-applicants, documentation for all parties will be requested

For self-employed borrowers/ entities:

1. Bank statements from Feb – Aug, 2020
2. GST returns
3. Income tax returns
4. Udyam certificate
5. In case of multiple applicants / entities, documentation of all concerned parties will be required.

In case of secured loans, depending on the loan amount at the time of restructuring, if any additional collateral is required, then documentation pertaining to the same will also be requested.

Please note that this list is indicative, and depending on various other factors, additional documentation may also be requested.

As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”.

If you have multiple loans, you will need to raise a request separately for each loan account that you wish to be restructured.

The table below gives the revised definition of MSME entities as per the Government of India

Self-employed individuals/entities falling under the MSME category as per the revised MSME classification announced by Government of India, can apply for relief under the MSME restructuring scheme if the total exposure, including non-fund based facilities, of banks and NBFCs/HFCs does not exceed Rs. 25 crore as on March 1, 2020. Please contact your nearest SMFG Grihashakti branch or your relationship manager for more details.

We also advise our self-employed customers to kindly register themselves as MSME through the Udyam portal of the Government at the earliest.

Yes, you can apply for loan restructuring. The application will be assessed based on the criteria mentioned above as well as other factors including credit worthiness. Accordingly, you will be intimated on the status of your loan restructuring request and how it may be processed further.

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

If you wish to apply for loan restructuring, you are requested to do so at the earliest. Please note your eligibility will mostly depend on the level of financial loss which you may be facing as a direct consequence of Covid-19 pandemic. We will assess your request based on the criteria mentioned above as well as our scheme policy at the time of application.

There will be a restructuring fee of 1% plus applicable taxes on the outstanding portfolio if you choose to get your loan restructured.

1. Even if you have submitted the loan restructuring application, until the same gets accepted, you are expected to pay your monthly EMIs as per the current schedule. Please note that the EMIs as per current repayment schedule should be paid on time as accounts will continue to be classified as Standard till the date of invocation of resolution under this framework. Once your loan restructuring request is accepted, you can then follow the revised EMI schedule.
2. However, if your loan restructuring request is rejected, you will be expected to pay your EMIs as per the existing schedule. Please note, any delay/default will attract additional interest and will impact your credit score.

If you can pay your EMIs now, SMFG Grihashakti welcomes you to do so. However, do note that the relief under this scheme should be granted before a certain date and your application should be submitted before that date. The application will be accepted only if it meets the norms mentioned above and your application as well as supporting document should clear all verification checks.

*Terms and Conditions apply