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.

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

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.

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 Fullerton India’s Policy.

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.

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.

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 for each loan you need to be restructured separately.

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 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.

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.

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.

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.

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.

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

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.

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.