One Time Loan Restructuring Advisory

  • The moratorium on payment of loan EMIs enabled by RBI has ended on Aug 31, 2020 and hence, we will not entertain any moratorium requests for EMIs falling due from Sep 1, 2020.
  • We have taken cognizance of the RBI circular on Restructuring Covid-19 impacted loans and have formalized a loan restructuring policy keeping in view RBI’s Expert Committee Report. For detail policy please click here.

Loan Restructuring Calculator

You can now use our loan restructuring calculator to understand how opting for this scheme may affect your loan.

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50,000
2,00,000
5,00,00,000
%
8%
15%
36%
Months
12 Months
36 Months
240 Months
1
12
240

Actual monthly EMI

0

This is the amount you have to pay without loan restructuring

No. of EMIs to be paid without loan restructuring

0 Months

This is the no. of EMIs you have to pay without restructuring

%
8%
14%
36%

The tenure is extending by more than what is permitted as per RBI regulations under the loan restructuring framework. Please enter a higher EMI amount.

Disclaimer:These values are for demonstration purposes only. Actual values will depend on a number of factors including eligibility and Fullerton India's policy at the time of loan restructuring.

How to use the Loan Restructuring Calculator?

  1. Enter your loan amount, interest rate and tenure
  2. If you had availed for a moratorium between Mar-May, 2020 then please enter the number of months for which moratorium had been availed. If you hadn’t opted for the same, select “0” from the dropdown.
  3. If you had availed for a moratorium between Jun – Aug, 2020 then please enter the number of months for which moratorium had been availed. If you hadn’t opted for the same, select “0” from the dropdown.
  4. Enter the last date on which you had paid your EMI
  5. If your account has been in default for more than the allowed number of days as per the RBI regulations pertaining to the one-time loan restructuring scheme, then you will not be eligible for loan restructuring. If you are eligible, enter more details to continue.
  6. Select whether you had opted for an EMI change or a tenure change post moratorium. If both EMI and tenure have changed post moratorium, please select “both”.
  7. Depending on your selection, the monthly EMI you are supposed to pay will be displayed along with the remaining number of EMIs. Please note that if both your EMI and tenure had changed post moratorium, you will need to check your latest loan schedule and enter the EMI and remaining EMIs  accordingly. This EMI amount will be the EMI that you were supposed to pay from Sep, 2020. In the next field, please enter the remaining EMIs you are supposed to pay from Sep, 2020. Please refer to the latest schedule shared with you for this purpose. You can also check these values through the logged in section or through the m-connect app.
  8. Now enter the EMI amount you are willing to pay per month.
  9. Select the interest rate. For the sake of accuracy, please select the same rate as per the original schedule.
  10. You will be able to see the number of EMIs you will now have to pay if your loan gets restructured as per the conditions in step #9, along with the increase in the total interest payable over the loan tenure.
  11. As per RBI regulations, tenure extension cannot be for more than 24 months. Thus, if the tenure is getting extended for more than 24 months, this means that you will need to pay a higher EMI amount than the one you have entered. Please change the values entered in step #8 to continue.

Please note that this calculator is not valid in cases where:

  1. Pre-EMI / part payments have been made prior to loan restructuring
  2. Terms of your loan had been readjusted before moratorium/loan restructuring
  3. The aim of this calculator is to give you an approximate idea of how opting for loan restructuring may affect your loan. Values are indicative, and may not take into account other charges such as insurance, any bounce / penalty charges / loan restructuring fees, etc.

How to Apply for Loan Restructuring?

If you wish to opt for the loan restructuring scheme, please follow the steps below:

  1. Click on “Contact us” link from the top menu on this page
  2. Select “Existing customer”
  3. Enter the loan account number or LAN id for the loan you wish to get restructured. Please click here to know more about what LAN id is and how you may check the same.
  4. Enter your mobile number and email address (as registered with us)
  5. Select “One-time loan restructuring” from both the dropdowns
  6. Enter your information in the fields that follow. This will include details of the impact of COVID-19 on your income as well as other information.
  7. Please ensure you enter all details correctly, as your application will be evaluated based on the same.
  8. Complete the captcha and click on “Submit”
  9. If you have multiple loans, please apply separately for each one that you want to get restructured by submitting separate requests. Please ensure that you enter the LAN for each loan correctly.

Based on the information provided, Fullerton India will evaluate your request and determine your eligibility for the loan restructuring scheme based on the regulatory guidelines and our policy for the same. If your request is accepted, you will be contacted by a representative for more details, and will also be asked to submit required documents in your nearest Fullerton India branch.

Eligibility Criteria for Loan Restructuring

Here are a few basic eligibility criteria for the one-time loan restructuring scheme. Please note that this list is indicative, and actual eligibility will depend on a variety of factors, including Fullerton India’s policy at the time of application.

  • The applicant must have not 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 below Rs. 25 crores.
  • The 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:

  • Eligibility will be determined based on the reduction in income and its financial impact on the applicant. This will depend on our evaluation of the information as well as supporting documents provided by the applicant.
  • We will then assess the ability of the applicant to be able to resume payment of revised EMI/interest agreed upon before approving the resolution plan.
  • Loan restructuring eligibility will also be determined based on the applicant’s repayment history, and the responses are given while availing the RBI moratorium between Mar – Aug, 2020.

Loan Restructuring Documentation

Here is a list of some basic documents that you may be asked to submit if your loan restructuring request gets accepted. Please note that this list is indicative, and depending on your individual profile and eligibility, additional documents may also be requested.

For salaried borrowers:

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

For self-employed borrowers/ entities:

  • Bank statements from Feb – Aug, 2020
  • GST returns
  • Income tax returns
  • Udyam certificate
  • In the 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.

FAQs

What is the loan restructuring scheme approved by RBI? What is the purpose of this resolution framework?

In light of the COVID-19 pandemic and the economic fallout it has brought upon millions of borrowers across the country, RBI has provided a framework to banks & other lending institutions for the implementation of resolution plans. The purpose of this framework is to provide relief to borrowers who have been financially impacted as a result of the Covid-19 pandemic.

Based on this framework and its regulatory guidelines, Fullerton India is framing its policy for restructuring of loans availed by individuals and entities impacted by the COVID-19 pandemic.

Who is eligible for loan restructuring?

Here are the basic eligibility criteria for loan restructuring:

  1. The applicant must have not 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 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 Fullerton India based on the information as well as supporting documents provided by the borrower.
  2. Fullerton India 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 assessment before approving the resolution plan.
  3. Fullerton India will also consider the applicant’s repayment history, and the responses given while availing the RBI moratorium between Mar – Aug, 2020.

Should I opt for loan restructuring?

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. An additional loan restructuring fee may be levied, adding to your cost
  2. Increase in overall interest payable, thereby making your loan more expensive

How will the loan restructuring scheme affect my loan?

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, will be by a period not more than two years.
  3. Your total interest payable over the tenure of the loan will increase.

Will my loan be restructured automatically if I don’t pay my EMIs?

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.

At the moment my income has not been impacted, but it may happen in the future. Can I apply for loan restructuring?

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 Fullerton India’s Policy.

Which products of Fullerton India are eligible for loan restructuring?

The following products of Fullerton India are eligible for this scheme:

  1. Loan Against Securities
  2. Loan Against Property
  3. Personal Loans
  4. Two Wheeler Loans
  5. Commercial Vehicle Loans
  6. Business Loans
  7. MSME Loans / Secured Business Loans
  8. Home Loans

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

How to apply for loan restructuring 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 Fullerton India.

What are the documents required for loan restructuring?

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 addition 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.

What will be the effect of loan restructuring on my credit history?

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

I have multiple loans with Fullerton India. Should I apply for loan restructuring only once or do I have to apply separately for each and every loan?

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

I am self-employed / am an MSME entity having my small enterprise. Am I eligible for loan restructuring?

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

Classification

Composite Criteria

Micro

Small

Medium

MSME - Micro, Small and Medium Enterprises

Investment in Plant and Machinery or Equipment Not More than

Rs.1 Crore

Rs.10 Crore

Rs.50 crore

Annual Turnover Not More than

Rs. 5 crore

Rs. 50 crore

Rs. 250 crore

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 does not exceed Rs. 25 crore as on March 1, 2020. Please contact your nearest Fullerton India branch or your relationship manager for more details.

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

I had not taken the moratorium between Mar – Aug, 2020. Can I apply for the loan restructuring scheme now?

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 may be processed further.

My loan was taken along with a 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 need to agree and sign on any changes in the loan structure including the restructuring agreement.

What type of loans are not eligible for restructuring?

The following types of loans are not eligible for restructuring:

  1. Loans to individuals/entities for agricultural purposes and classified as agricultural loans by Fullerton India
  2. Loans provided to agricultural credit societies, financial service providers, Central, State and local government bodies, Fullerton India Employees
  3. Exposures of housing finance companies where the account has been rescheduled after March 1, 2020
  4. Loans given for commercial usage will be entitled to claim relief under the MSME guidelines as explained in point above.

What is the last date to apply for the loan restructuring scheme?

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

Will there be any processing fees or charges if I restructure my loan?

Fullerton India may levy a fee if you choose to get your loan restructured.

If I apply for loan restructuring, will I still have to pay any monthly EMI?

Even if you submit loan restructuring application, until the same gets accepted, you are expected to pay your monthly EMIs as per the current schedule. Once your loan restructuring request is accepted, you can then follow the revised 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.

Please note that if your loan restructuring request is rejected, you will still be expected to pay your EMIs as per the existing schedule. Any delay / default will attract additional interest and will impact your credit score.

What will happen if I pay my EMIs now and don’t opt for restructuring? Can I take this facility later?

If you can pay your EMIs now, Fullerton India 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
** Subject to foreclosure charges. Terms and conditions applicable.