Fullerton Grihashakti: One Time Home Loan Restructuring Terms

Following RBI’s guidelines Fullerton Grihashakti has released its one time Home Loan restructuring advisory, FAQs and Home Loan Restructuring Calculator for the convenience of customers that are stressed due to COVID19.

The housing finance company has said that the request for extension of Moratorium beyond 31^st August 2020 will not be accepted. However the Home Loan customers who are finding it difficult to pay the regular EMIs can apply for restructuring as per central bank’s notification.

At Fullerton India Home Finance Co. Ltd. (Grihashakti), you can apply for loan restructuring on the following products:

• Loan Against Property
• Home Loans
• Commercial property loans
• Home improvement loans
• Home extension loans

Other Fullerton India Products available for restructuring from other subsidiary are:

• Personal Loans
• Two Apple-converted-space Wheeler Loans
• Unsecured Business Loans
• MSME Loans
• Commercial Vehicle Loans

For the convenience of customers, the lender has also uploaded Loan Restructuring Calculator. Customers can estimate the impact of restructuring option on their loan.

The restructuring can be opted for in any or a combination of the following ways:

a. Deferment of EMI (with or without interest).

b. Reduced EMI and extended tenure.

c. Resetting Rate of Interest.

The lender has further shared detailed guidelines comprising FAQs related to Restructuring Policy Framework for COVID-19-related Stress.

FAQs

✅ What is RBI’s Loan Restructuring Scheme?

The Reserve Bank of India has extended financial relief measures for the stressed borrowers amidst disruptions caused by COVID-19 pandemic. After six months of loan moratorium, the central bank has now asked banks to offer an option of restructuring their loan for 2 years. This provision should be provided to customers who are facing financial issues due to COVID19.

✅ What is eligibility for one time Loan Restructuring?

The eligibility criteria for RBI’s one time loan restructuring scheme are:

• The account should not be in default for more than 30 days as on Mar 01, 2020. As for MSME Loans below Rs. 25 crore, the account should not have principal or interest due for more than 89 days.
• Only applicants whose income or cash flows have been affected due to pandemic are eligible to apply for loan restructuring.
• The approval will be based on the review conducted by Fullerton Grihashakti. The lender will assess ability to repay post the recasting of loan and check the information and documents submitted by the borrower. Other factors such as your past repayment history, and previous communication during moratorium will also be considered.

✅ Who should opt for loan restructuring relief?

Anyone who can manage to repay loan instalments should not opt for restructuring. The provision should only be used only if you are unable to arrange for repayment due to financial hassles imposed by pandemic.

The restructuring of your loan will cause following:

• The account will be reported as “restructured” to the credit bureaus.
• It will escalate interest liability, thereby making loan more expensive.
• A loan restructuring fee will also be levied.

Thus you should carefully analyse the decision.

✅ What will be the impact of loan restructuring on my account?

The loan restructuring will impact the account in following ways:

• EMI will be reduced/ adjusted according to your budget.
• Interest cost will increase subsequently.
• The loan tenure will increase accordingly.
• The maximum tenure extension would be 24 months

✅ If I fail to repay loan, will restructuring scheme automatically apply?

No. It is not an automatic scheme for all borrowers. The scheme will be extended to eligible applicants only. All those who do not apply or whose recasting application is rejected are required to pay EMIs as per the schedule. Any delay or failure in payment will be treated as a default and will attract penalty and bounce charges.

✅ Can I apply for loan restructuring if my income will be affected in future?

Yes, you can certainly submit your request to Fullerton Grihashakti. However, the approval will be based on the assessment made as per your case, credit history, credit score and our credit policy.

✅ On which products can I apply for Loan restructuring?

At Fullerton India Home Finance Co. Ltd. (Grihashakti), you can apply for loan restructuring on the following products:

• Loan Against Property
• Home Loans
• Commercial Property Loans
• Home Improvement Loans
• Home Extension Loans

✅ What is process to apply for loan restructuring?

At Fullerton India Home Finance Co. Ltd. (Grihashakti), follow these steps to apply for loan restructuring scheme:

• Visit https://www.grihashakti.com/ and Click on the “Contact Us” icon on the top.
• Fill the form.
• Select “Yes” if you are an Existing customer.
• Now fill Loan details as well as your identity and contact details. Fill Loan Account Number (LAN ID), registered mobile number and email ID.
• Choose nature of query: One Time Loan Restructuring.
• At “More details” dropdown select One Time Loan Restructuring.
• Now share nature of employment and the level of financial impact of pandemic. Share this information accurately. This piece of information will be evaluated before approving the restructuring request.
• Kindly verify before clicking “Submit.”
• Eligible applications will receive a call for next steps.
• You will be asked to submit required documents and only after verification the request will be accepted.

✅ What documents are required for loan restructuring?

Fullerton India has shared an indicative list of documents for loan restructuring. Each borrower, co applicant or entities involved will be required to submit the documentation.

As per the applicant’s loan account, further documentation may be required. Here is the list:

• Salaried borrowers:
• Salary Slips and Bank Statements for Feb 20 to Aug 20.
• Self-employed borrowers/ entities:
• Bank statements for Feb 20 to Aug 20.
• GST Returns
• Income Tax Returns
• Udyam Certificate

For Secured Loans, if additional collateral is required for restructuring, documentation will be needed to support the same.

✅ Will restructuring impact my Credit Score?

As per the RBI guidelines, the account will be reported to the Credit Bureau as “Restructured.” This will hurt your credit rating.

✅ Should I apply separately for restructuring of multiple loans?

Yes. For multiple loan accounts, separate requests for restructuring are required.

✅ Can I opt for restructuring if I had not used the moratorium?

Yes, you can apply. The factors such as impact of pandemic on your repayment capacity and your past credit history and future capacity to serve loans will primarily help us evaluate your application.

✅ What are responsibilities of co-borrower/s in the restructuring agreement?

All borrowers/ co-borrowers are required to share their documents and share consent for restructuring request. Every party who signed the original loan document needs to sign the restructuring agreement and agree to change in the terms of loan.

✅ What is the last date to apply for the Loan Restructuring Scheme?

As per RBI’s directive, borrowers are requested to apply for restructuring before December 31, 2020. The Fullerton India has requested the borrowers to share their request as soon as possible so that the needful support can be extended in time.

✅ Are there any fees or charges linked to restructuring request?

At Fullerton India Home Finance Co. Ltd. a restructuring fee of 1% of the outstanding portfolio plus applicable taxes will be levied.

✅ Can I miss EMIs if I have applied for loan restructuring?

We suggest you to follow the EMI schedule till your request for restructuring is accepted. For, the account should be classified as Standard till the date of invocation of resolution. The delay in payment in case of rejection will affect your score and attract a late payment fee.