RBI New Rules for Repayment of Loan: Many individuals apply for personal loans or business loans and other types of loans but some of them are not capable of repaying the loan amount timely due to some financial losses, and borrowers have to face trouble while repaying the loan amount. However, banks generally decrease the CIBIL score of the customer if they do not repay the loan amount timely.
So, it will be very difficult for the customer to apply for a loan next time due to their bad CIBIL score. However, the Reserve Bank of India- RBI has suggested very beneficial RBI New Rules for these borrowers as they can maintain their CIBIL score while facing financial issues and do not submit the loan amount timely. So, if you are also one of them then you can check these strategies which will help you to maintain the CIBIL score if you are unable to repay the loan amount timely.
Loan restructuring, also known as debt restructuring, is a process in which a borrower and lender agree to modify the terms and conditions of an existing loan. This is typically done to provide financial relief to the borrower who is facing difficulties in meeting the original loan terms. The goal of loan restructuring is to make the repayment more manageable for the borrower while still satisfying the lender’s interests.
If you are borrowing a loan and cannot repay the EMI according to the existing loan terms and conditions, then you can negotiate with the Lander and restructure the loan terms and conditions where you can increase the repayment schedule and make other changes in the terms and conditions.
Following Borrowers can apply for loan restructuring
- Most of the applicants who apply for loan restructuring are suffering from Loss of income. If you had a proper source of income to repay the loan amount and accidentally lost your source of income including being fired from the job, Loss in the business, etc. then you can agree with your lender by appealing for the loan restructuring.
- If your expenses have instantly increased such as medical expenses, suffering from any natural disaster, or other type of expenses then you Lander can also provide the facilities of loan structuring to these customers.
- If any borrower is facing an economic downturn then they can please their lenders for Loan restructuring facilities.
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RBI New Rules: Benefits of Loan Restructuring
However it is important to repay the EMI by following your existing loan terms and conditions, but in case you are not able to pay the EMI timely due to multiple factors or financial issues then you can apply for restructuring where you will get the following benefits:
- If you timely apply for a loan restructure according to your situation then you can maintain your CIBIL score as the bank will not decrease it if you provide them with the proper information about your financial issues and apply for the loan restructure.
- The bank will not list you as a bank defaulter due to your trustworthiness with the bank has bank will mark you as a customer who is willing to pay the loan amount but cannot pay the EMI for a specific period due to financial conditions.
- Citizen will get the benefit of getting loan amounts from another bank after the repayment of their existing loan amount due to their good CIBIL score.
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Types of Loan Restructuring
Applicants can restructure the terms and conditions according to the landers where the famous restructuring conditions are the following:
- Extend EMI schedule: You can agree lander extend the EMI schedule so you will get more time to submit the loan amount and your EMI will also be reduced accordingly. However, the interest rates will be similar and maybe go up or down according to the lander
- Reduce the interest rates: However, applying for reducing the interest rates is quite difficult but you can negotiate with the Lander to reduce your interest rates due to your financial loss so they can make changes accordingly.
- Most of the lenders have also a facility to stop receiving the EMI for a particular period and after that, you can pay the loan amount accordingly, but the interest rates will be calculated from this period according to the conditions.