Mumbai: Banks have taken steps to restructure loans amid indications that the moratorium imposed on COVID may not be extended. The loan repayment period will be extended for two years. Accordingly, the monthly repayment amount will be reduced.
The six-month moratorium was imposed as a temporary relief to those struggling to repay loans due to COVID. However, the RBI said extending the moratorium would not be beneficial. Instead, the RBI has allowed banks to restructure loans. Banks can extend the loan repayment period for up to two years. Besides, those who qualify will receive a moratorium on interest.
The interest in the moratorium period must be paid by next March. Besides, a repayment period of six months will be given later. Anyone who has taken an education or home loan can restructure the loan. The restructuring process should begin by December 31. This also applies to loans taken from co-operative banks.
