The State Bank of India has recently announced loan restructuring to reduce the impact of the Covid-19 epidemic on borrowers. SBI Card Users (SBI Card Users) also have the opportunity to take advantage of this loan recast scheme. The country’s largest bank said in a statement that the policy is for accounts in which payment capacity is affected due to Covid-19. Today we are providing other information for SBI Card under this scheme including eligibility, benefits, restructuring plan, its impact on cricket report.
SBI Card will also prepare a list of suitable accounts based on its assessment. The following will be taken into account for this.
Accounts that have been classified as standard accounts and have no defaults until at least 30 days before March 1, 2020. Such accounts will be suitable for restructuring.
These accounts have not been classified as NPAs in the 12 months prior to March 1, 2020.
It will also include accounts that have taken advantage of the moratorium between March 1 and August 31. Or did not repay the minimum rest at least once at this time.
Eligibility will be defined at the account level. This will not be at the customer level. Assume that a person has more than one account and only one account is suitable, then only one account can benefit from it. Other accounts will continue to operate normally.
Under the current restructuring plan, the total balance will be converted into a term loan within a maximum of 24 months. The interest rate on restructured accounts will be between 13 and 19 per cent. The interest rate will also depend on what is chosen between 3 and 24 months beyond the term loan.
This resolution must be finalized by 31 December 2020 and implemented within 90 days. For corporate accounts this limit will be for 180 days.
How will this restructuring plan of SBI work?
This will require customers to make EMI deductible auto debit or National Automated Clearing House (NHCH) or PDCs available, depending on the plan’s consent. Its timeline will be determined by the SBI card.
Credit card status
The extended facility will be deactivated on the credit card if a customer opts for the EMI plan. The customer cannot use his credit card. However the card will be reactivated when regular EMI is done for 3 to 6 months.
What will be the effect on credit score?
The bank has also given information about this. If a customer challenges the restructuring option, it will be shown as ‘restructured’ in their credit report. The credit history of the borrower will then be governed by the policy information of the credit information company.
This policy does not apply to these accounts
This policy does not apply to SBI Card Employee Accounts. Also, the accounts that are available between March and July will not be included Register Has been made or a mandatory letter has been issued after the settlement.