State Bank of India has shared details of a 2-year loan restructuring for customers affected by COVID 19. The customers can either opt for a moratorium of up to 24 months or extend the tenure up to 2 years for repayment relief.
After six months of Moratorium, the RBI had asked banks to issue loan recast guidelines for their customers amid ongoing financial disruptions for businesses and individuals. The last date to apply for SBI repayment relief for personal loans, home loans, car loans, and education loans is December 24, 20.
SBI has launched a website for borrowers where they can check their eligibility for the restructuring and upload documents. Following this, the customer will get a preliminary sanction of the application. The customer needs to get this document assessed and approved at the branch level.
SBI has offered two types of relief under this framework for recasting loans:
Moratorium- for up to 2 years
Loan Restructuring- max tenure extension of 2 years.
The cost of a restructured loan will be 0.35% more than the current rate of the loan. However, the Moratorium must also accrue interest. Only customers who have faced loss of income due to COVID19 should apply for relief.
FAQs
The purpose of RBI’s Framework for restructuring Personal Loans is to offer a substantial repayment relief to borrowers who are significantly affected by the COVID-19 pandemic. After the six-month Moratorium, the eligible borrowers are offered to reset their liability into a restructured loan for up to 2 years.
No. Only accounts active in books before 01.03.2020 are eligible for restructuring benefit.
No. Only those affected due to lockdown and pandemic are eligible for restructuring.
You can apply online on sbi.co.in. The application is protected by an OTP that is directed via your Mobile Number. Alternatively, visit your bank branch and submit the application for restructuring of loan.
The last date to apply for restructuring relief from SBI is 24.12.2020.
Yes. A moratorium is EMI deferment and not a waiver. Interest will accrue during the EMI holiday.
Yes, this will be in addition to the previous six month COVID 19 relief offered by bank.
Yes, you can repay as your financial health eases. There will be no charge for prepayment. It will also help you reduce interest cost.
No. It is a product specific offer. The tenor extension will be according to your loan agreement.
Yes. The tenure will extend as per the moratorium granted. After adjusting the interest accrued and tenure extension, EMI schedule will be re-assessed and shared with you.
The additional interest of 0.35% p.a over and above your current pricing will be charged. This calculation will be made for the remaining tenure of the loan.
No
Yes, you can get relief for multiple accounts, subject to eligibility.
The bank will take 7-10 working days after submission of the application.
No
An Arrangement Letter (in duplicate) will be issued, stating details and terms and conditions. You need to get this document duly accepted and signed by all the signatories of the loan, including loan guarantors (if any) within 10 days to the bank.
Updated On Jul 27, 2026
Written By
Written By Priyanka JainContent WriterLoans & Credit Cards
Priyanka Jain is a seasoned Omni-channel content specialist, recognized as ‘top 50 content marketing professional-2019’ by World Marketing Congress, CMO. She is an enthusiastic personal finance blogger and writes actively on credit rating, loans, credit cards, insurance, and mutual funds. At MyMoneyMantra, she supports MMM’s core vision to simplify credit decisions and spread financial literacy.
