Business

SBI allows online check for COVID-19 loan rejig

State Bank of India (SBI) has rolled out a facility on its website for restructuring COVID-19-impacted home, auto, personal and education loans. Retail borrowers can check their eligibility for the restructuring of their loans without visiting the bank’s branches. They need to enter the account number and after OTP verification, can find out if they are eligible. Once eligible they will get a reference number which they can use while visiting the branch with the requisite papers to complete the formality in less than 30 minutes.

Of the bank’s total retail customers, 9% had applied for moratorium and the eligible customers for loan restructuring would come from this pool, senior bank officials said. C. S. Setty, Managing Director (Retail & Digital Banking), SBI said this portal would help customers to find it operationally convenient to check their eligibility before they visit a branch. Out of the 3500 people who had logged on to the portal before 2.15 p.m. on Monday, only 111 were found to be eligible for restructuring, he said.

Under the resolution framework devised by RBI, borrowers whose loan accounts were classified as standard for more than 30 days as on March 1 and incomes impacted by COVID-19 are eligible.

The approval of borrowers’ loan restructuring application under this scheme which will be governed by RBI guidelines, would be conveyed by the SBI branch. Retail borrowers can check their eligibility instantaneously for loan recasts by providing income details and they have the option of requesting a moratorium of 1 to 24 months and extension in their loan term.

Apart from being standard, the person as per the COVID-19 impact criteria set up by the RBI, must have seen reduction in income and job loss since March.

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Printable version | Oct 28, 2020 4:27:09 PM | https://www.thehindu.com/business/sbi-allows-online-check-for-covid-19-loan-rejig/article32663589.ece

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