On May 5, 2021, the RBI released the Resolution Framework 2.0 to help minimize the potential financial stress of individual borrowers, small businesses and MSMEs due to the resurgence of the COVID-19 pandemic. As mandated by RBI, eligible borrowers who have been severely impacted by the pandemic can now opt for restructuring of their Bajaj Finserv personal loans. Read on to find out key details relating to Bajaj Finserv Personal Loan restructuring including its eligibility criteria, documentation requirements, application process, etc.
What is Loan Restructuring?
Bajaj Finserv’s RBI-mandated loan restructuring framework is designed to offer relief to borrowers who have been financially impacted by the resurgence of the COVID-19 pandemic. The current loan restructuring framework can offer relief to borrowers of personal loans in the following ways:
- Rescheduling of payments
- Conversion of any interest accrued (or to be accrued) into different credit facility
- Granting of moratorium up to a maximum period of 2 years (based on the assessment of your income streams)
Do note that loan restructuring may also involve modification of the tenure and/or recalculation of EMI payable depending on the type of relief provided to the borrower. Also, the above mentioned list of options are only for indicative purposes and, Bajaj Finserv after assessing the impact of the financial stress on the borrower, may at its discretion, apply one of the above methods or a different method to offer relief to eligible borrowers on a case-to-case basis.
The following key criteria needs to be taken into consideration when applying for Bajaj Finserv personal loan restructuring:
– Eligible Borrowers Include:
- Individuals who have availed the loan for personal use.
- Individuals who have availed the advance/loan for business purposes. However, their aggregate exposure from all the lending institutions should not be more than Rs. 25 crore as on 31st March, 2021.
- Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSMEs as on 31st March, 2021, their aggregate exposure should not exceed Rs. 25 crore from all lending institutions.
– Other Criteria:
- Applicant’s account should be classified as ‘Standard’ with the lender as on 3st1 March, 2021.
Bajaj Finserv may introduce additional criteria at its discretion on a case-by-case basis.
No specific documentation requirements have been mentioned yet by Bajaj Finserv. However, the lender may specify documents when the borrower applies for loan restructuring.
How to Apply
Those interested in opting for the loan restructuring framework offered by Bajaj Finserv can apply in the following ways:
- Online application submitted through the Bajaj Finserv website
- By visiting a Bajaj Finserv branch in person
- By calling the Bajaj Finserv customer care number (+91-8698010101)
Q1. Is it mandatory to get my Bajaj Finserv personal loan restructured?
Loan restructuring is optional and available to those facing financial distress due to the COVID-19 pandemic. It is advisable that you continue to make your EMI payments on time if you are able to as opting for loan restructuring can increase interest cost of the loan as well as adversely impact your credit score.
Q2. If I opt for the restructured facility, will it show up on my credit report?
Yes, if you avail the restructuring facility, the status of the restructured loan will be reported to all credit bureaus as “restructured”. However, the impact of this change on your cibil score/ credit score will vary depending on the scoring algorithm used by the relevant credit bureau.
Q3. When will I know whether my Bajaj Finserv personal loan restructuring request/ application is accepted or not?
Bajaj Finserv will communicate its decision regarding the rejection/ acceptance of COVID-19 loan restructuring application to applicants in writing within 30 days of receipt of such applications/ requests.
Q4. What is the last date for invocation of the resolution plan?
The resolution plan must be invoked latest by 30 September, 2021.
Q5. I had opted for loan restructuring earlier under Resolution Framework 1.0. Is it possible to apply for it again under Resolution Framework 2.0?
Yes, you can apply for the restructuring facility again under Resolution Framework 2.0. However, this is subject to the condition that you had either not availed the moratorium or availed a moratorium of less than 2 years and/ or extended your residual tenure by a period of less than 2 years, then Bajaj Finserv is permitted to use this window to modify your plan only to the extent of increasing the moratorium period / extending the residual tenure upto a maximum of 24 months.