India’s largest bank State Bank of India or SBI has launched of an online portal where its customers can can check their eligibility for the restructuring of their loans online. According to the directives of Reserve Bank of India, SBI has come out with a restructuring policy to provide relief to its retail borrowers from the adverse impact of COVID-19. Housing and other related loans, education loans, auto loans and personal loans are covered under this restructuring scheme, subject to eligibility.
SBI’s retail customers upon logging into the portal will be asked to key in their account number. After completion of OTP validation and inputting a few necessary information, the customer will come to know their eligibility and receive a reference number.
This reference number will be valid for 30 days and within which time customers can visit the branch to complete the required formalities. The restructuring process will be complete after verification of documents and execution of simple documents at branch/CPC.
CS. Setty, Managing Director (Retail & Digital Banking), SBI, expressed the hope that with the launch of this portal, the customers will find it operationally convenient to check their eligibility before they go to a branch.
Under this resolution framework framed by RBI, such borrowers are eligible whose loan accounts were classified as standard and not default for equal to or more than 30 days as on March 1, 2020, and their incomes are impacted by COVID-19.
The approval of borrowers’ loan restructuring application under this scheme – which is going to be governed by RBI guidelines – would be conveyed to them by the SBI branch/CPC.
SBI customers will be issued an arrangement letter (in duplicate) stating the details of relief sanctioned under the framework and other terms and conditions. They have to return the duplicate copy duly executed and signed by all the signatories to the loan and also guarantors (if any) in token of having accepted the terms and conditions contained therein within 10 days.
State Bank of India (SBI) is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. As on March 31, 2020, the bank has a deposit base of over Rs. 32 lakh crore.