SBI launches online portal for restructuring of retail loans in India

By Edil Corneille

State Bank of India (SBI), said to be the country’s largest lender, has come out with a Restructuring Policy as per directives of RBI with an aim to provide relief to its retail borrowers from the adverse impact of COVID-19. Today, the bank has announced the launch of an online portal for the smooth and hassle-free implementation of the Restructuring Policy. Customers can check their eligibility for the restructuring of their loans through the portal from the convenience of their homes or wherever they are indoors.

The launch of the portal holds significance in times where it is dangerous to move outside due to the risk of contracting COVID-19. India has overtaken USA and become the top country in terms of global COVID-19 recoveries, according to the Ministry of Health and Family Welfare.

SBI’s retail customers upon logging in the portal will be asked to key in their account number. After completion of the OTP validation and inputting a few necessary information, the customer will know their eligibility and receive a reference number which will be valid for 30 days. 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.

C. S. 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 visit a branch amid these challenging times of the outbreak of the coronavirus.

Under the resolution framework 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.