Notice 13(2)

If you are facing a financially distressing time, you can negotiate and modify the terms of your loan to avoid defaulting on payments. This process is known as loan restructuring. It is a better way to extend your repayment tenure. However, you must note that your lender may consider your request based on many factors such as your repayment capacity, past payment history, nature of the loan taken, etc. Usually, such solutions are only provided to certain types of term loan borrowers.
However, due to the COVID-19 pandemic, the Reserve Bank of India (RBI) announced a one time loan restructuring policy for all borrowers whose accounts were classified as standard as on Feb, 2020. This policy has once again been reintroduced on May 05, 2021 in light of the economic distress caused by the 2nd wave of COVID-19 and the subsequent lockdowns. As per the RBI guidelines, loan restructuring applies to individuals who do not have outstanding for more than 30 days, and are under financial stress due to the pandemic. Furthermore, lenders will have their own policies to evaluate the eligibility of applicants for loan restructuring. It may seem a great idea if you are adversely impacted by events like the financial instability induced by the COVID-19. However, keep in mind that you will have to incur loan restructuring fees and higher overall interest payable, as your tenure increases.