HDFC Bank Shares Restructuring FAQs & One-Time Interest Payment Option After Moratorium

HDFC Bank, the largest private sector bank and the leading lender in the country, has announced ‘One Time Interest Payment’ facility for its customers who opted for COVID 19 Moratorium between March 2020 to August 2020. The lender has also released detailed FAQs on RBI’s restructuring scheme for retail loans.

All customers- whether they applied for Moratorium or not, can apply for a restructuring facility by visiting the bank branch, or through website, or by contacting their relationship managers.

After the expiry of a 6-month loan moratorium on August 31, 2020, a lot of borrowers were looking out for ways to ease off repayment blues. Amid ongoing pay cuts, job cuts, and business losses, the financial disruptions caused due to COVID19 are very much active. Thus many people are looking out for EMI relief options.

However, it is recommended to pay your outstanding gradually and try to become debt-free as soon as possible. Delaying payments is no solution as interest will continue to accrue.

Thus, HDFC Bank has released a public note on its website. It says customers who opted for RBI’s COVID relief Moratorium package now have “an option to make an ad-hoc payment towards the dues that accrued during the moratorium period.”

The option is offered as a choice. The bank further says, “it will help customers to reduce their liability.”

Link for one time interest payment after Moratorium is: https://portal.hdfc.com/login

The customers who opt for this option will enjoy the benefit of making regular instalments (EMIs) as per the original repayment schedule. Thus they will not feel any additional repayment stress due to accumulated interest after this payment.

HDFC BANK- FAQs on Restructuring Scheme of RBI

✅ What is RBI’s restructuring scheme?

At the end of the 6-month moratorium, RBI has announced a set of guidelines for banks & lending institutions to address the repayment issues of customers amidst the COVID19 pandemic. In these guidelines, the central bank has asked banks frame policies for one-time loan restructuring for loan accounts held by individuals and entities impacted due to pandemic. The RBI has offered to extend the loan tenor by 2 years.

✅ What are the eligibility criteria for restructuring?

The eligibility criteria for the restructuring of Personal Loans (including Home Loans, Car loans & other retail loans) as well as Business Loans are as follows:

a) Individuals & Entity Account that are Standard as of March 1 2020. There should not be a default of more than 30 days with the bank.

b) The borrower seeking a restructuring facility should be financially impacted by the COVID-19 pandemic. There should be proof of loss of income with the applicants.

c) Basis the documents and information provided by the customer to the bank will finally let the lender assess the request restructuring of loan. The lender may also consider previous credit history for the same.

✅ After Moratorium how do I adjust my HDFC Loan?

The HDFC Bank has offered one time interest repayment option to customers who opted for Moratorium. The link to pay accrued interest due to deferring of EMIs is: https://portal.hdfc.com/login  
After this payment, the loan will continue as before and there  will be no additional liability. Those who want further relief can opt for restructuring options as guided by RBI.

✅ How do I apply for restructuring my EMIs on HDFC Loan?

To opt for restructuring your HDFC Home Loan, Personal or a Business Loan, you can adopt any of the three methods: a) Download the form from the application link on the website and submit the duly filled request form to the bank branch. b) Contact your RM for the same. C) you can also apply online.

✅ How do I know available restructuring options for my HDFC Loan?

The remaining tenure of your HDFC Loan can be extended further by 2 years or 24 months so that you can gradually payout your loan, with minimum repayment struggle.

✅ Are documents required for restructuring benefit?

You will be required to submit documents about the current status of your employment or business. Salaried individuals need to submit salary slips and bank statements, while the self-employed or business units will require a bank statement, GST returns, Income tax returns, Udyam certificate, etc. to prove the status of current income.

✅ Will restructuring affect my credit report?

The RBI has said that the account will be reported to the credit bureaus. The accounts will thus be classified and reported as “Restructured” for all accounts seeking recasting relief.

✅ Are there processing fees or charges involved for the restructuring of loan?

Yes, each bank may levy a fee or charge for restructuring the loan. This may be a nominal charge and will vary as per the bank.

✅ Do I need to apply for multiple restructuring options for multiple loans?

The bank will first assess the repayment capacity before accepting the restructuring request. If deemed fit for repayment, all accounts can be clubbed under the single application. Also the borrower has a choice to apply for the restructuring of one, few or all accounts.   

✅ Can I opt for restructuring of card bills but not the EMI plans?

No. The total Credit Card outstanding will be restructured into a new loan account.

✅ With Credit Card restructuring will my HDFC Jumbo will also be affected?

It will be entirely up to you if you want to restructure either or both of Jumbo account & Credit Card balance.

✅ Is there a minimum outstanding threshold for restructuring?

Yes. The minimum outstanding balance for restructuring is set at Rs. 25,000.

✅ Are self-employed/ small-scale business units eligible for restructuring?

Yes. Self-employed individuals/entities falling under the MSME category can apply for EMI relief under the MSME restructuring scheme. The bank RM will share further details to their customers. The self-employed customers would need to register themselves as MSME through the Udyam portal of the Government, wherever applicable.

Link of Udyam portal: https://udyamregistration.gov.in/Government-of-India/Ministry-of-MSME/online-registration.htm

✅ Can I apply for restructuring, if I did not use the moratorium option?

Yes. The scheme for restructuring is open to all customers of the bank. Whether you opted for a moratorium or not you can apply for restructuring benefit, provided your income is impacted due to COVID19.

✅ What type of loans can apply for restructuring?

Personal Loans, Home Loans, Agri Loans Loans, and business loans all fall under the relief program of RBI.

✅ Do all co-borrowers of the loan need to sign a restructuring agreement?

Yes. As per RBI’s guidelines: all borrowers or co-borrowers of the loan should agree and sign on restructuring agreement.

✅ What is the link to apply for HDFC Bank Loan Restructuring?

The link for the online application will be updated soon by HDFC Bank. You can write a mail to your RM or bank’s customer care for restructuring till then.

✅ What are the contact details for HDFC Restructuring Customer Support?

Corporate and SME customers should contact their relationship manager for further assistance. Individual customers should send email to loansupport@hdfcbank.com