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RBI Monetary Policy on Loan Restructuring & EMI Moratorium 3.0 (Extension) – Aug 2020 - YouTube
Channel: Asset Yogi
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Namaskar, my name is Mukul
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And you are welcome to the Asset Yogi channel
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Friends, with the covid-19 going on, many people have to withstand the financial stress
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Someone has lost the job or someone's pay has been cut
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People are not getting their full salary
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With all this going on, we people have taken a loan and we cannot pay for its EMI
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For that, the government has provided relief and given the 6 months moratorium period
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Which is ending on 31st August,
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In that, we didn't have to pay our EMI, but the interest
was accumulated and finally, we have to pay it
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Because this moratorium period is ending on 31st August
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And the situation of the economy is not good yet
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Jobs have not come back yet and people have pay cuts also
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With this, RBI has introduced a new policy called loan restructuring
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Pay attention here
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A moratorium is not extended here but
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But a loan restructuring policy has been brought
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And this will cover all corporates, MSME,
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Means small businesses, and individuals
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Means retail consumers like you and me
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So who is covered under this policy
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We are going to know that in this video
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What are its eligibility and other conditions?
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We are going to learn this in this video
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With that, which monetary policy decisions did RBI take
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Which will affect you and me
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We are going to know them in this video, so please stay tuned with the video
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Press the bell icon while subscribing so that you'll get the notification of the latest finance video
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Friends if you want to know more concepts of investment and finance
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You can check our playlists, for example, for stocks, there is a master investor series
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Real estate series, and you will get all these things
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In our youtube playlist for free of cost
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Let's start our video quickly
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In this video, we will mainly focus on individuals
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Means on professionals and salaried class
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And with that small business owners
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I am sure the analysis of big corporates has already begun
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How do they have to restructure the loan?
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Their work on this must have been started already
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But the individuals and
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Small business owners
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They do not get proper information sometimes
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They don't know how to take benefit from this sometimes
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I will try to cover all these points in his video
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Let's hope you will get some information from this video and if you are facing
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Some kind of financial stress, then this will help you
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Before talking about loan restructuring, we will understand two key policy decisions
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Taken by RBI, the first decision is the interest rates are not changed
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The key bank rates, repo rate, bank rate, reverse repo rate
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They are kept the same because inflation had risen in last quarter
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So as many people were expecting that the interest rates on loans will be decreased
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So that will not happen
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Other than this, the second decision that was taken was related to the gold loan
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Let's say you take a loan against gold
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So it's not like you will get a loan for the full amount of gold
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Let's say you mortgaged gold worth Rs 1 lac
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You will get a loan of up to 75 thousand against that on today's date
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This means the loan to value ratio is 75%
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It has been increased to 90%, which means you will get up to 90000 Rs against the gold of 1 lac Rs
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Now we will talk about loan restructuring
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So first we will learn how restructuring is different from a moratorium
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See if you see in the past, a moratorium of 6 months has been given
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Which is going to end on 31st August
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In that, you did not have to pay the EMI
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That means anyone can avail that
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So in the latest policy, restructuring has replaced the moratorium
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Loan restructuring means that
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The loan can be restructured in any form
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This restructuring can be done with your loan amount
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Let's say you have not paid interest for some time
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That interest can be added to your loan amount and increase your loan amount
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And that loan can be restructured to the loan amount
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Second, how can be restructured, your EMI may be deducted
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Let's say your pay has been cut and you can pay less EMI
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Then your EMI can be detected and your tenure can be increased
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And along with this, you may be given a moratorium period also
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So now this maximum extension
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This means your maximum tenure or the maximum moratorium
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You can get a maximum of two years of extension
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So we have understood what is a loan restructuring
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But the important thing is a condition
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Who can avail of this?
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So the first criteria are that only affected people can avail this
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This means that if someone's salary hasn't been affected during covid
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They cannot avail of this
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But if your job is lost or your pay has been cut
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Then definitely you can avail this
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Because earlier many people had opted moratorium
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Who can pay the EMI, they opted that too
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Then those people cannot opt for it now
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Bank will use its discretion here, so the power here has come to the bank
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In an earlier case, if you wanted to opt for the moratorium
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Then you could go to the bank straight and apply for it because directions were from the government
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But in this case, the bank will scrutinize every application
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We have to keep this thing in mind
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But if we are facing financial stress then what is the problem with this?
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We can go to the bank and show them our documents
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And can say my salary has been cut or we are not getting any salary
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If your case is genuine then you can go for the restructuring
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With this, one more condition has been put here
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As of 1 March 2020, whoever's loan was due for less than 30 days
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Only they can avail of this benefit
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So if we understand this in simple language
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The people who pay their loan regularly,
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But their condition is not good due to covid
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Or they have financial stress
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This policy has been brought mainly for them
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Other than this, you have to remember one more thing
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You have to apply for loan resolution means the loan restructuring
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You have to do it before 31 December 2020
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This means you can apply for a loan restructuring by this time
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And whatever the invocation date is, it should be implemented within 90 days of that
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Other than that, bank staff cannot apply for this type of restructuring
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So these were all the conditions of loan restructuring
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But if you fulfill these conditions then you can apply for loan restructuring
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Especially if you are in financial stress, then it will provide you relief
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And on What types of loan is it applicable on?
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It applies to all types of retail loan whether it is a home loan, car loan, personal loan
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Education loan, whatever type of loan or loan against property
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If you go to loan restructuring then your credit score will not be harmed
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It will be considered a standard account
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Other than this, I will discuss one or two point for small business owners
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A restructuring policy came last year in June 2019 for MSME
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It was continued or extended in February 2020
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All those guidelines are extended again
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The implementation date has been extended to 31 March 2021
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So the MSME or small businesses can apply for a loan restructuring
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But it should be implemented by 31st March 2021
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The maximum loan amount here is 25 crores
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For the loans that are below 25 crores, MSME can restructure them easily
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All these conditions are almost the same for the corporates
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But there is waiting involved in this
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Because the big corporates have big loans
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So they are approved by an independent agency
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An Independent committee is formed
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I don't want to stretch the video for too long
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We will not talk much about corporates
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We have understood the conditions of individuals and small business owners
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So if you are facing any type of financial stress
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Then you can go to your bank and apply for a loan restructuring
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I am sure if your financial situation is reflected in your salary slips or bank account
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Then the bank cannot neglect it
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I am sure you got some important information from this video
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If someone is going to the same situation among your family and friends
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Then you can share this video with them
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If you liked this video then like the video
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Then subscribe and press the bell icon
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To get the notification of the latest video
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So let's mean in the next financial informative video
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Till then keep learning, keep earning
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And be happy as always
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