Is Your SBI Household Loan Restructurable? So check online

The private customers of SBI are asked to enter their account number when logging into the portal. After completing the OTP validation and entering some necessary information, the customer learns his authorization and receives a reference number. This reference number is valid for 30 days, during which time customers can visit the branch to complete the necessary formalities.

CS Setty, Managing Director (Retail & Digital Banking), SBI expressed the hope that with the introduction of this portal, customers will find it operationally convenient to verify their eligibility before going to a branch.

As part of this processing framework set by the RBI, those borrowers are eligible whose credit accounts have been classified as standard and are not in default for more than 30 days on March 1, 2020 and whose income is affected by Covid-19.

Retail customers are offered an easy way to opt for a moratorium of 1-24 months. The moratorium is offered on home loans and other related loans, education loans, auto loans (other than commercial loans), and personal loans.

The bank restructures the loans based on the client’s assessment of future earnings. Borrowers who seek restructuring will be charged 0.35% more than other customers. The last application for restructuring is December 24th, 2020.

Here are the FAQs:

1. What is the purpose of this resolution framework?

The purpose of this framework is to help borrowers affected by the Covid-19 pandemic.

2. How do I know that I am entitled to a settlement under this framework?

A borrower is considered to be affected by the Covid-19 pandemic if one of the following conditions is met:

I. Your salary / income in August 2020 has been reduced compared to February 2020

ii. Reduction / suspension of salary during the blocking period

iii. Job loss / business closure

iv. Closure during lockdown / restriction of the activity of units / shops / permanent establishments in the case of self-employed / freelancers / traders

3. Which loans are covered by this framework?

The following loans are covered by the framework:

I. Housing and other related loans

ii. Education loans

iii. Car loans (excluding commercial use loans)

iv. Personal Loans

4. Are all loans in the above categories eligible?

No. In order to be eligible under the framework, the following eligibility conditions must be met:

I. Your loan should be a “standard account” at the time of the application for discharge in this context and should be “standard” by March 1st, 2020 and also not be in arrears for more than 30 days.

ii. You should be affected by the Covid-19 pandemic and meet one of the conditions listed in FAQ No. 2 above.

5. Am I entitled if I took out a loan after March 1, 2020 but am affected by the Covid-19 pandemic?

No, only the accounts that were in the bank’s books on March 1st, 2020 are eligible for this framework.

6. My current income is not affected, but I expect to lose income in the future. Will I be eligible for a restructuring due to lower future income?


7. How to apply for relief under the above framework.

You can apply online on our website ( The application will be validated with an OTP that you will receive on your mobile phone number.

Alternatively, you can visit the branch where your account is kept and submit your application.

8. Which documents have to be uploaded or submitted with the application?

Copies of the following documents must be uploaded (for online applications) or submitted together with the application form at the home branch.

I. Pay slips for the month of February 2020 and current / latest pay slip.

ii. A declaration of the expected salary / income immediately after expiry of the desired moratorium period (maximum 24 months).

iii. Letter of discharge (in the event of job loss).

iv. Account statements of the wage credit account for employees or

v. Declaration by self-employed / business people stating that their business has been affected by Covid-19.

9. Until what date can I apply for relief under the Framework?

The last date for applying for relief under the framework is December 24th, 2020.

10. What reliefs / relaxations are available within the framework of the framework?

The following relief / relief can be punished within the framework, provided that the banking standards are complied with:

I. Moratorium of a maximum of 24 months.

ii. Rescheduling of installments and extension of the term of office for the same period

on the granted moratorium with a maximum duration of 2 years.

11. What is a moratorium?

During the moratorium, you do not have to pay any EMIs on the loan.

12. Whether interest will be charged during the moratorium?


13. Whether the above-mentioned moratorium will take place in addition to the moratorium already granted by the bank due to stress caused by Covid-19?

Yes, the moratorium approved under this framework is granted in addition to the moratorium previously granted by the bank.

14. If I have excess cash during the moratorium, can I pay EMIs during the moratorium?

Yes, it’s up to you. This will help reduce your interest amount.

15. What is the maximum age up to which the loan term can be extended?

This is product specific. In the case of a home loan, for example, the term of the loan can be extended to a maximum of 24 months or until the main borrower has reached the age of 77, whichever is earlier. In any case, the term of the loan can only be extended to a maximum of 24 months in this context for Covid-19-related stress.

16. Will anything change at EMI?

Yes. Due to the granted moratorium, the term of your loan will be extended by the period of the moratorium and the EMI to be paid after the moratorium will be recalculated and communicated to you.

17. Will the price of my loan change?

Yes, you will have to pay additional interest of 0.35% pa over your current price for the remaining term of the loan in order to offset part of the costs of the additional provisions to be made by the bank.

18. Would I be eligible for additional credit facilities under the Framework?


19. Can I request discharge for more than one account under this framework?

Yes, you can apply for relief for more than one account under this framework.

20. One of my credit accounts at SBI has been irregular for more than 30 days as of March 1st, 2020. For an exemption under this framework, can I opt for another Loan Account that was standard and that met the eligibility criteria in Section 4 above?

Yes, accounts that meet the eligibility criteria are eligible under this framework.

21. Should I not be entitled to any other loans during the moratorium granted under the Framework?

No. Your eligibility for another loan, however, depends on the eligibility standards prescribed in each case for the respective loan program of the bank.

22. Is the authorization given in the portal to be regarded as a sanction by the bank for the restructuring of my loan?

No. The portal will reflect the “preliminary eligibility”. Your branch office may ask you to submit additional documents as required or for clarity, etc. The decision communicated by your branch is final insofar as your entitlement to grant relief under this framework.

23. How many days does the bank need to process the request?

Usually the bank tries to process your application within 7-10 working days of submitting the application.

24. Do I have to pay a processing fee for extending the discharge?


25. What documents do I need to prepare after sanctioning an appeal under this framework?

You will receive a letter of agreement (in duplicate) detailing the facilities that are granted to you under the Framework Agreement and other terms. You must return the duplicate, duly completed and signed by all signers of the loan and, if applicable, also by guarantors (if any), in order to accept the conditions contained therein within 10 days.

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