In the Corona era, the RBI has given a big relief and instructed the banks to restructure the loan. These reliefs are especially for the borrowers who are going through a financial crisis in this era of Corona and are facing difficulties in repaying the loan. On the other hand, if you have also made a plan for restructuring your loan, then stop and understand some special things related to it. Because if you have taken this decision without thinking, then you may also have to bear the loss.
Who will benefit?
Before knowing the effect, it is important to know who comes under the purview of this facility. According to the instructions issued, loan restructuring will be done by the same customer who has not paid installments to the bank for some time. But customers paying regular EMI will be deprived of the benefits of this facility.
This will be the effect
Let us now tell you about the effects of loan restructuring –
1. If you get the loan restructuring done, your credit score can be affected directly or indirectly. This means that when you apply for a loan sometime in the future, it will negatively impact your profile.
2. It is clear that if you are going to take a loan even further, then it is clear that loan restructuring is not the right option for you.
3. If you are thinking that a restructured loan will be cheaper, it is not so, but for this you will have to pay a separate processing fee.
4. Not only this, but you will also have to pay a higher rate of interest than the existing loan.
5. Since in restructured loan you will get more time to pay the loan, you will have to pay more interest.
What is your option?
In such a situation, you must be thinking what is your option. So with loan restructuring, it would be good that if you have an FD or PF account, then you withdraw money from there and pay your loan. Apart from this, you can also take a loan on a fixed deposit.