Moratorium not a solution says, RBI.
The proposal to help the borrowers has been proposed by the RBI governor Shaktikanta Das. In her proposal, she addressed providing restructuring options to those who find difficulty in paying back their loans. Therefore restructuring 2.0 will be available prior to every individual who availed of the restructuring option earlier and also for those who have not.
These days RBI has been very realistic in its approach to deal with the economic parameters that got influence by the covid wave again during recent times. though RBI has not announced any moratorium, the stressed borrowers have been given choices to opt for change if required. By this, it will ensure the banks with those who actually want the restructuring of their loans. And as well as it will help to counter us with the financial stress in the system. Says, Mr. Anshuman Panwar, Co-Founder, Creditas solutions.
On August 31, 2020, the RBI’s six-month EMI moratorium on loan payments came to an end. Following that, borrowers were given the option of approaching the bank for further restructuring under the RBI’s Restructuring Circular, which was released in August 2020.
The RBI is on its way to give a big market blow, but there are actions are on the way to boost the morale and to support people downside. The absence of a moratorium will bring on positivity for the individuals, with a hope that the situation is not so worse to warrant another moratorium. However, the impact of the covid 2nd wave can be seen clearly on the industry. However, the pandemic has had a wide impact on the industry. “A broader launch of relief measures targeted at mid-corporate and large borrowers, as well as industries heavily affected by the pandemic including real estate and hospitality, would have been beneficial,” says Akshay Taneja, MD of TDI Group.
People can go for restructuring 2.0 if they have not signed for restructuring 1.0. If the loan amount is up to 25 crore. The loans are here considered today as standard loans on march 31st, 2021. Banks and other financing institutes will build up schemes anytime up to September 30th, 2021.
Due to amidst the covid-19 second wave, the problems can be seen or determined or is growing in many economic sectors, leading to a bad impact on business and on the individual as well. There are many who are not in a condition to pay EMIs on time. So the option to go is to approach one lender and ask the bank for a restructure of the loan followed up with the re-structuring system 2.0.
The banks offer restructuring options depending on the amount of principal owed by the borrower. The unpaid or the outstanding amount may be deferred until the end of the term. However, actual restructuring would be determined on the basis of the case, depending on the lender’s terms