ICICI Bank Restructuring Norms for Personal & Corporate Loans

Following RBI’s resolution framework to extend one-time loan restructuring facility to individuals and businesses impacted due to COVID 19, ICICI Bank has released detailed guidelines for its customers.

All customers of Personal Loans, Home Loans, Auto Loans, Credit Card Outstanding, Working Capital Credit Facilities etc can apply. The last date for application of loan restructuring is December 18, 2020. The customer can apply online or offline by visiting the bank. A set of self attested documents are required to be submitted along with the application to establish the impact of COVID19 on the income. The lender will take up to 10 days to review the request and contact the borrower through email or SMS on registered mail id and mobile number.

The customers are requested by the lender to go through following FAQs and follow the guidelines issued for this one time repayment relief. The rate of interest will apply during the restructuring period.

ICICI Bank’s Restructuring Framework: Frequently Asked Questions (FAQs)

✅ What is restructuring of loan?

Restructuring allows the lenders to offer concession to borrowers. Owing to COVID 19 financial disruptions, the RBI has asked lenders to recast loans and offer restructured payment option to the customers affected by pandemic. The restructuring will result in change in EMI & tenor.

✅ What are the eligibility guidelines for restructuring?

To apply for restructuring, an ICICI customer needs to fulfil following:

1. The account should be classified as ‘Standard’ on date of application. Besides it should not be in default for more than 30 days as on March 1, 2020.

2. The account should also be standard on the date of invocation, i.e date when borrower and ICICI Bank agree for restructuring plan.

3. The cash flow or income of the borrower should be severely impacted due to COVID19 pandemic. The ICICI Bank will review the application as per the documentation and information provided by the customer.

✅ What types of loans are eligible for restructuring?

ICICI Bank has released a list of products that qualify for restructuring relief:

A) Individual loans:

1. Consumer loans like Credit Card outstanding, Auto Loans (excluding loans for commercial use vehicles), secured personal loans (excluding business loans), and personal loans for professionals (excluding business purpose loans)

2. Home loans

3. Education loans

4. Loans for investment in financial assets (shares etc.)

B) Entity Loans (MSMEs and exposures up to Rs. 25 crore not included):

1. Loan against Property

2. Business Instalment Loan

3. Commercial Cards

4. Auto Loans

5. Dealer Finance

✅ How to apply for loan restructuring at ICICI Bank?

An ICICI customer can apply for restructuring through following:

1. Apply online

The customer can apply through link on ICICI official website. An OTP will be generated to verify the application. So share your registered email and contact number to use this method. In case your registered contact points are changed, get it updated by contacting the branch.

2. Visit the nearest bank branch. You can find the nearest loan servicing branches here: https://www.icicibank.com/find-atm-branch/loan-servicing-branches.page

3. Contact Relationship Manager (RM)

Your relationship manager will help you complete the process without any delay.

✅ What is the last date to apply for restructuring plan at ICICI Bank?

The last date to submit the application for restructuring of loans and credit facilities is December 18, 2020 for ICICI customers.

✅ What restructuring benefits are available to ICICI customers?

The restructuring benefit will be offered after assessing the impact of the financial stress due to COVID19. The bank may extend the repayment period by up to 24 months and lower the size of EMI amount for the borrower.

✅ Will ICICI bank accept all restructuring requests?

No. The application is not a guarantee for loan restructuring. The bank will review the application according to its internal policies and communicate the acceptance or rejection to the customer.

✅ What are the steps for availing restructuring facility?

You can apply for restructuring online by visiting the website or offline, by visiting the bank branch. The steps are shared below:

1. Visit the website or directly click on the link for restructuring. Fill the form for restructuring of credit facility and submit application. Upload the required documents.

Or, Visit nearest branch. Submit the application and documents at the branch.

2. Basis the information and documents, the bank will review the case and take decision. The bank will communicate the status of application by SMS or email.

3. After this, you need to visit the branch to accept the resolution plan. The borrower may be required to submit more documents, if any, as requested.

The customers will need to accept the resolution within the permitted timeline. ICICI Bank has asked customers to reach within 30 days or the application will be cancelled. The customer will then be liable to serve the liability as previous repayment schedule.

✅ What documents are required for restructuring facility?

The documents for restructuring will vary as per the product. 
a. Salaried or employed will require following:

• Salary slips from January 2020
• Bank account statement for Salary Account from January 2020
• Proof for loss of job (if applicable)
• Self declaration for unemployment due to COVID19

b. Self employed will require following:

• Bank account statements for past 12 months + income documents
• GST returns for FY 20 & FY 21

c) As for Corporate Loans, you will require:

• Audited financial report or FY 19
• Provisional/ Audited report for FY 20
• Projected report till FY 2022
• GST returns (if applicable)
• CA certified turnover from April 1, 2019 (if GST not applicable)
• Bank statements for transactions from April 01, 2019

Also, the entity should ensure financial ratios are as recommended by the RBI appointed expert committee and as per ICICI Bank’s internal policy.

Besides, for all the categories the documents should be self-attested. In addition to these documents, the bank may ask for additional information, documents or collateral according to the customer profile.

✅ How to submit documents for restructuring?

All the required documents should be submitted along with the application for restructuring of loan. You can submit application online or by visiting the branch.

✅ Can I apply for restructuring of multiple loans?

Yes, subject to eligibility you can apply for restructuring of multiple loans or credit facilities. The ICICI Bank will review the application. According to its internal policy and financial stress, the application will be approved. The final decision will be communicated to the borrower.

✅ Can restructuring be applied for a part of outstanding amount?

No, ICICI Bank does not allow partial restructuring of an account.

✅ Is loan settlement also restructuring provision?

No, any settlement of loan will not come under restructuring.

✅ What will be the impact of restructuring on my Credit Report?

The account will be reported as “restructured.” The impact will be as per policy for restructured loans.

✅ How long it will take to process application for restructuring?

ICICI Bank will take up to 10 working days to respond to restructuring request. The bank will contact you via SMS and email on registered mobile number & email.

✅ Will restructuring attract additional rate of interest?

Yes there will be additional cost for restructuring loans.

✅ What loans or accounts are not eligible for restructuring?

The following loans and accounts are not eligible for restructuring under RBI’s Resolution Framework for COVID19 stress:

• MSME borrowers with aggregate exposure less than Rs. 25 crore or less as on March 1, 2020.
• Farm credit & Loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Largesized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture.
• Loans to financial service providers.
• Loans to Central and State Governments; Local Government bodies (eg. Municipal Corporations); and, bodies established by an Act of Parliament or State Legislature.
• Loans to housing finance companies

✅ If my company is not registered as MSME, how do I get relief? 
 

The customers are requested register as MSME through the Udyam portal of the Government. The link is Udyam portal: https://udyamregistration.gov.in/Government-of-India/Ministry-of-MSME/onlineregistration.htm