RBI<\/a> will look into suggestions on allowing restructuring for loans that are overdue till at least 60 days, as against the present proposal of 30 days,\u201d the official added, stating that it is unlikely that the outer limit of repayment terms for corporate as well as individual loans will be extended.<\/span><\/p>\nBankers are also of the opinion that moratorium should not continue once the permission for restructuring of the loans has been secured. \u201cWhile the moratorium does not permit banks to tinker with the tenure and leads to a rise in EMI after the end of the moratorium period, the restructuring will allow banks to extend the term of the loan by up to two years, thereby bringing the monthly EMI component down for the borrowers,\u201d said a senior official with a bank, the newspaper reported.<\/span><\/p>\nThe central bank had announced a skeletal scheme for restructuring of loans for companies and individuals whose loan accounts are in default for not more than 30 days as on 1st March, 2020, and said that they are eligible for one-time restructuring. For corporate borrowers, banks can invoke a resolution plan till 31st December, 2020 and the same can get implemented by 30th June, 2021. However, there are companies which were about to revive their operations and income streams but were hit by the pandemic. Sectors including textiles, auto ancillary business, jewellery segment were already in distress in January and a 30-day overdue rules will leave many companies out of ambit, an official of a state-owned bank said.<\/span><\/p>\n
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