HDFC Bank sets minimum outstanding at ₹25,000 for restructuring retail loans

The country’s largest private sector lender HDFC Bank has set out a minimum outstanding of ₹25,000 for restructuring of retail loans.

“Minimum outstanding balance required to convert the card or loan outstanding is ₹25,000,” the lender has answered in the frequently asked questions (FAQs) on loan restructuring.

“The reduction of income and its financial impact on the customer will be reviewed by the bank basis the documents or information provided which does show the drop in cash flow due to the Covid-19 impact. The bank will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring,” it further said, adding that the repayment track record of the customer, and the responses given by the customer while claiming moratorium earlier will also be factored in the restructuring decision.

Customers can visit the bank’s website or contact the relationship manager to fill the application.

“The link for application will be updated shortly,” it further said.

Borrowers would have to submit documents about the current status of their employment or business such as salary slips and bank statements for salaried customers and bank statements, GST and income tax returns and Udyam certificate for self-employed customers.

It could also charge a fee for restructuring the loan.

Further, the loan or credit facility will be reported to the credit bureau as ‘Restructured’.

Loans to individuals or entities for agricultural purposes and classified as agricultural loans by the bank, agricultural credit societies, financial service providers, Central, State and local government bodies, HDFC Bank employees and exposures to housing finance companies which have already been rescheduled would, however, not be eligible for restructuring, it further said.

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