Great relief to SBI customers: Companies and individuals have suffered a severe loss in the difficult times of Covid 19. Considering the same, the public sector bank State Bank of India has taken a key decision to impose a temporary ban of up to 24 months for its home and retail borrowers.This is exercised by rescheduling installments and providing relief for the same period equal to the period of ban granted by service period. The SBI has made it clear that this temporary ban can be extended for a maximum of 2 years.
According to the decision taken by SBI, the borrowers don’t need to pay the monthly installment of the loan for 24 months. However, this facility is available only to those who have taken a loan before March 1, 2020. The bank has taken this decision for them as the income has been reduced due to the lock down due to the corona. However, borrowers have to prove that their income has decreased due to the corona virus epidemic. This means, it may not be easy for everyone who wants to avail this opportunity.
Great relief to SBI customers
State Bank of India is at the forefront of the decision on the loan. Following it, banks like HDFC and ICICI are likely to make decisions to this effect. These banks are expected to go towards this facility by the end of this month. State Bank of India has launched an online portal to understand the ability to rebuild people’s debt.
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After a thorough analysis of the sources of income of the customers, the bank decides how many days a customer should have a Moratorium facility. The bank has announced that the borrowers will be provided a temporary ban for 6 months to 2 years as per the Reserve Bank of India guidelines. After analysis, it will be known who will get this facility for 6 months or longer.
As of June, the bank is currently providing a temporary ban on 10% of the loan. It is believed that most people will not apply for loan restructuring. Experts believe that about 9 million people want to take advantage of this facility. Any corporate or MSME bank that wants to get a loan restructuring has to go to one of the SBI branches as they can’t avail this facility online.
