FAQS on restructuring 2.0 scheme of RBI

1. What is the restructuring 2.0 scheme approved by RBI?
The Reserve Bank of India (‘RBI’) had provided a framework dated August 6, 2020 to banks & lending institutions for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. The RBI has further issued two notifications to extend the above facility under the Resolutions Framework 2.0:

Notification RBI/2021-22/31/DOR.STR.REC.11/21.04.048/2021-22 dealing with Resolution framework for Advances to Individuals and other Businesses.
Notification RBI/2021-22/32/DOR.STR.REC.12/21.04.048/2021-22 dealing with Restructuring of Advances to MSMEs

Basis the framework and regulatory guidelines, Epimoney Private Limited (‘the Company’) has framed and adopted this policy named as “Restructuring of the loan/s 2.0” (‘Policy’) of individuals and entities that have been impacted due to the COVID-19 pandemic.2. Who is eligible for restructuring?
Customers meeting below mentioned criteria will be eligible for restructuring as per RBI circular under Resolution Framework 2.0
I. Individuals and Small Businesses –

Individuals who have availed loans for personal purposes.
Individuals who have availed of loans and advances for business purposes and to whom the lending institutions have aggregate exposure of not more than INR 25 Crores as on March 31, 2021.
Small businesses, including those engaged in retail and wholesale trade, other than those classified as micro, small and medium enterprises as on March 31, 2021, and to whom the lending institutions have aggregate exposure of not more than INR 25 Crores as on March 31, 2021.
Credit facilities / investment exposure to the borrower was classified as Standard by the lending institution as on March 31, 2021.

II. Entities (MSME segment) –
Should have been classified as Standard as on March 31, 2021 and should also fulfill the following criteria –

Self Employed customer segment who qualifies the below mentioned MSME norms.
The borrower should be classified as a micro, small or medium enterprise as on March 31, 2021 in terms of the Gazette Notification S.O. 2119 (E) dated June 26, 2020
Udyam registration document will be required for MSME classification
The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed INR 25 Crores as on March 31, 2021.
The borrower’s account was a ‘standard asset’ as on March 31, 2021.
The borrowing entity is GST-registered on the date of implementation of the restructuring. However, this condition will not apply to MSMEs that are exempt from GST-registration. This shall be determined on the basis of exemption limit obtaining as on March 31, 2021.
The borrower’s account was not restructured under previous MSME restructuring circulars.

3. What loans will qualify under the definition of “Personal purpose”?
- Personal loans refer to loans given to individuals and consist of:

Consumer Credit - personal loans to professionals (excluding loans for business purposes)
Education Loan
Loans given for creation/ enhancement of immovable assets (e.g., housing, etc.)
Loans given for investment in financial assets (shares, debentures, etc.)

- MSME loans with Udyam certificate (The borrower should be classified as a MSME on March 31, 2021 in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020).
4. Am I eligible for restructuring if I have take loan after March 31, 2021 and affected by pandemic?
No, only those loans which were availed on or before March 31, 2021 and affected by pandemic will be eligible for restructuring.
5. How do I avail the restructuring benefit on my loan?
You may visit our Company website for the application link, fill the application form and submit the relevant details.
6. Can I apply multiple times for restructuring?
No, you can apply for restructuring only once.
7. What are the restructuring options that are available to me?
The balance tenure of the loan can be extended by a further period of maximum 24 months, including the moratorium period at the Company’s discretion to ease your monthly EMI repayment burden.
8. Do I need to submit any documents to avail the restructuring benefit?
The Company will require you to submit documents giving details about the current status of your employment or business:

Latest 6 months bank statements till date ( from Jan’ 21 onwards till date of application)
Udyam certificate for MSME customers
Declaration by self-employed non-professionals/ businessmen declaring that their business is affected by Covid-19

9. Will opting for the restructuring package have an impact on my credit bureau report?
As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”.
10. I hold multiple loans/credit facilities with the bank/lending institution. Do I have to apply separately for each of these loans?
The restructuring application form shall have the option to apply for one or all the loans by a single application on the Company’s website. The Company shall assess the application on regulatory guidelines, on the COVID-19 impact and the viability of the repayment plan before decisioning the same.
11. Can I apply for restructuring now as I was not able to apply for moratorium before?
The scheme for restructuring is open to all customers of the Company irrespective of the moratorium applied status subject to the borrower meeting the regulatory guidelines of restructuring.
12. I have already availed of restructuring. Can I avail this once again?
If you have already availed restructuring, you are not eligible for restructuring under this scheme. However, if you have not availed of the full benefit of 24 months tenor extension in the earlier scheme which ended on December 31, 2020, the Company can evaluate and provide relief to the extent of overall tenor extension subject to eligibility conditions being met.
13. My loan was taken along with a co-borrower/s. Will all the co-borrowers of the original Loan agreement be required to sign the revised restructuring agreement?
As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.
14. What is the last date of making applications through the portal?
The link on the portal will be live till September 10, 2021 for customers.