Restructuring of Personal, Business & Auto Loans by Fullerton India

Ahead of festival season, Fullerton India has released detailed guidelines and advisory for customers to opt for One Time Loan Restructuring to sail through COVID induced financial disruptions.

All Fullerton India customers of Personal Loans, Business Loans, Auto Loans & Consumer Loans can apply for loan restructuring online. The Fullerton India Home Finance Co. Ltd has also shared restructuring terms & conditions for Grihashakti Home Loan customers.

The lender has ruled out option of extending moratorium beyond Aug 31, 2020. It has requested customers that are seeking financial relief to request for restructuring up to 2 years and ease the EMI structure.

Loan Restructuring Calculator- How to Use?

Using Loan Restructuring Calculator, customers can analyse the impact of reduced EMIs on interest and tenure of loan. Simply by filling out loan amount (outstanding balance), interest rate and tenure one can assess the impact on loan. Share number of months you used Moratorium for (as applicable), or select 0 from dropdown menu (if you didn’t use Moratorium). Share last EMI payment date and if your account has been in default for more than the limit allowed by RBI.

Select if you changed EMI, tenure or both during Moratorium. Next choose the EMI you want to serve and select original interest rate. This will help you assess how many EMIs will increase if you follow this structure of loan. Herein it is important to know that tenure cannot be extended for more than 24 months.

The Calculator is designed to help borrowers make estimate about restructuring loan. The results are indicative. The actual numbers may vary as per your loan agreement. Also, the results will vary, if you have made any prepayment before moratorium or restructuring request.

How to get my Fullerton loan restructured?

You can apply for restructuring online. Here are the steps:

• Click on “Contact us” on Fullerton India Website and fill the details in the form for restructuring.
• Share details accurately. Fill mobile number and email address only.
• Select “One Time Loan Restructuring” in next options from dropdowns.
• Share reason for restructuring relief.
• Based on information provided in this form and information provided during Moratorium, Fullerton India will assess your eligibility for repayment relief. Those who are found to be eligible will be contacted.
• Next you will be required to share documentation to the nearest branch. Only on successful verification of your documentation and application, the request for restructuring will be accepted.

Eligibility Criteria for Loan Restructuring

The eligibility requirements for loan restructuring are as follows:

• The customers of SMFG India Personal Loans, Two Wheeler Loans, Unsecured Business Loans, MSME Loans and Commercial Vehicle Loans can apply for restructuring.
• The account should not have pending dues as on Mar 01, 2020 for more than 30 days for Personal Loans and maximum of 89 days for MSME Loan Accounts.
• The applicant should have a proof of impact on income due to pandemic.
• The Credit Report and Repayment History should match with credit policy of Fullerton India.

Documentation Requirement for Loan Restructuring

Accepted applications should be supported by submitting following documents to the nearest Fullerton branch. This will help the lender assess the application and share the approval for Loan Restructuring request.

Documents List:

• Income proof:
  • Salaried employees: Salary slips before and after Mar 01, 2020
  • Self-employed/ business entities: Income statements
• KYC documents: Only if your address or contact details have changed since you last submitted KYC documents.
• Bank statements: Salaried employees: Bank statements for last 3 months Self employed/ business entities: Bank statements for last 6 months + 3 months prior March 2020 i.e. from Dec 2019 to Feb 2020
• Other documents: As requested. Self-employed will require GST returns, MSME registration certificate, ITRs etc.

These documents should be submitted at your nearest branch, so that we can further process your request for one time loan restructuring. Please note that if there are more than one applicant, documents for each co applicant will be required. As for secured loans, document for additional collateral may also be required, as per the case.

Here goes FAQs released by Fullerton India for customers:

FAQs

✅ What is RBI’s loan restructuring scheme?

In order to mitigate financial woes caused due to COVID19 induced economic fallout, the Reserve Bank of India has directed banks, NBFCs & HFCs to restructure loan terms, tenor and EMIs. This will help borrowers with cash flow issues manage their loan account with more ease. In all, RBI has guided lenders to restructure loans for maximum of two years and grant repayment flexibility to borrowers.

✅ Who are standard eligibility requirement for loan restructuring?

The RBI has clearly said that Restructuring should only be used by those borrowers who are impacted due to COVID. The applicants who want to apply for restructuring framework should not have payments due for more than 30 days as on Mar 01, 2020; as for MSME loan (below Rs. 25 crore) accounts, the EMI should not be due for more than 89 days. Besides, the monthly income, cash flows should be impacted due to the COVID-19 pandemic. Basis these factors and responses submitted while availing RBI moratorium, the lender will evaluate the nature of financial stress and borrower’s ability to serve EMIs as per the resolution plan and also after this period till the end of the tenure.

✅ What factors should I consider before opting for Loan Restructuring?

Only those borrowers who are unable to find sources to serve EMIs should opt for loan moratorium. For, an additional cost is attached with this provision of loan recasting. Factors to consider include: a) A loan restructuring fee will be le levied b) the new schedule will add additional interest cost to overall loan. c) Future EMI size or tenure will be extended too.

✅ At Fullerton India, what all products are eligible for loan restructuring?

You can apply for restructuring for these products: Loan Against Securities, Loan Against Property, Personal Loans, Two Wheeler Loans, Commercial Vehicle Loans, Business Loans, MSME Loans/ Secured Business Loans and Home Loans.

✅ How will loan restructuring impact my credit score?

As per RBI’s guidelines, the account will be reported as “Restructured” to Credit Bureaus. Thus it will certainly impact your credit score till you resume serving your EMIs as per the original schedule.

✅ Do I need to apply separately for multiple loans with Fullerton India?

Yes, if you seek restructuring for multiple loans, you will need to initiate separate queries for each account.

✅ Can I apply for multiple restructuring requests through one application?

No. Separate requests are required for different accounts. You will also need to provide different set of documents for each request.

✅ What types of loans are not qualified for restructuring?

Here is the list of loans not eligible for RBI’s loan restructuring framework: a) Loans to individuals/entities for agricultural purposes, i.e. agricultural loans, b) Loans to agricultural credit societies, financial service providers, Central, State and local government bodies, c) Accounts that are rescheduled after March 1, 2020 d) Commercial loans that are already using other MSME relief by RBI.

✅ What is the processing fee for restructuring a Personal Loan?

Each lender will share a nominal charge as a restricting fee. After your application is accepted, you will be briefed about the cost of restructuring.