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Almost everyone requires financial help at some point, and the most preferred way to get financial assistance is by applying for a personal loan. An unsecured personal loan is the easiest way to get instant funds; numerous banks and financial institutions offer personal loans at the best rates. The flexibility of end-users for this loan is what makes it the ideal choice for most individuals. You can use the loan funds to cover a myriad of expenses, from groceries to medical bills, debt payments or home repairs. Many lenders offer flexible repayment tenure on loans; this eases off the pressure on the borrowers.


However, the pandemic situation had a significant impact on the country's economy, also affecting the livelihood of many people. The financial crisis made it difficult for personal loan borrowers to pay their EMIs. Many self-employed business owners have seen a slowdown in their business, and employees experienced pay cuts, and some even lost their jobs. A lot of these individuals have ongoing loans to repay, but the financial crisis has made it challenging to make EMI payments on time.


To ease the stress on repayment of loans, the RBI (Reserve Bank Of India) had allowed banks to offer loan moratorium of six months on EMIs, which lasted till 31st August 2020. The moratorium period was available to all loan borrowers, but that couldn’t work for all the borrowers for an indefinite period. To help ease the situation, the RBI has set out guidelines for a policy that will grant relief to such loan borrowers.

Personal Loan Restructuring

  • The loan restructuring framework is made available to almost all individual borrowers.
  • The RBI has permitted that a borrower is eligible for the loan restructuring facility only if the loan was outstanding for not more than 30 days as on 1st March 2020.
  •  If you have made payments for all the loan EMIs and your loan is a standard loan you can avail the restructuring facility.
  • Individuals with loan overdue for more than 30 days on the cut-off date or had already become an NPA (Non-Performing Asset) before that date, will not be entitled to loan restructuring.
  • Whether you had availed the loan moratorium or not you can apply for the restructuring of a loan
  • A borrower is eligible for the facility of rescheduling of loan or conversion of outstanding interest into a separate credit facility. However, for this option, the borrower has to apply by 31st December 2020.

Who is Eligible for the Restructuring Plan?

The RBIs proposal of loan restructuring plans would be available only to the borrowers who are financially impacted by the pandemic. A self-employed individual affected by this pandemic can also avail the option of restructuring. Salaried individuals who lost their job or are working with reduced pay are eligible for this facility. To check with your eligibility for the restructuring plan on your EMIs in future, you can contact your lender to grant you the restructuring facility. Since the option is available to borrowers who have been impacted by the pandemic situation, you will have to provide proof by submitting documents in support of your contention that you are financially affected due to the pandemic. You can submit paperwork like a letter of termination of your services or a copy of the letter mentioning your salary cut, this will support your case, and you will be able to avail the restructuring plan on your loan.

Impact of Loan Restructuring on the credit

Before granting you the restructuring plan, the lender will get your credit history and ascertain whether you are creditworthy of getting a moratorium on the loan. If your credit history has turned bad after availing the existing loan, the lender may refuse you the restructuring facility. In case, the restructuring facility is granted to you, the same will get reported to the credit information bureaus. This will undoubtedly affect your credit history and credit score adversely, but not as adversely as it would have had your loan become an NPA.


Personal Loans are a blessing when you require immediate funds for emergencies or to consolidate your debts. You can apply for personal loans to deal with the pandemic situation and get the financial assistance you need. With online platforms like Bajaj Markets, you can get the best deal on personal loans. Apply for a personal loan through the loan app; the application process is carried out online. You can enjoy a higher loan amount with a Bajaj Finserv Personal loan and repay it over the flexible tenure. Get instant loan approvals and flexible repayment tenures of 12 to 60 months. To calculate your monthly EMIs, you can take the help of an emi personal loan calculator and get an estimated amount that is to be paid every month. Once the loan gets approved, the funds get deposited to your account within 24 hours. Also, get access to personalized pre-approved offers and added services like a free Financial Health Check Report (FCHR).


What’s more! Now enjoy the same benefits in just one click with our Bajaj Markets App.” Know more about how to get a personal loan.

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