Loan Restructuring Scheme

Yes, if you have availed restructuring 1.0 under personal loan restructuring. The tenor extension under restructuring 1.0 should be less than 24 months. Cumulative tenor extension under restructuring 1.0 and 2.0 should not exceed 24 months.  

No, you are not eligible for restructuring if you have availed restructuring 1.0 under MSME loan restructuring 

Please visit the bank’s website https://capitalfirst.com/customer-loan-restructuring and fill up the application form. You would also have to provide the associated documents and declarations as mentioned in the application form.

Wholesale and Business Banking customers are requested to reach out to their respective Relationship Managers for details.

The bank may require you to submit the following documents pertaining to your employment and business to determine the financial stress

a.       Salaried Customers – Salary slips and bank statements

b.       Self-employed Customers - Bank statement, GST returns, Income tax returns, Udyam registration document (for MSME) etc.

These requirements may vary depending on the kind of loan availed and loan outstanding. You may visit the bank’s website for further details

You have to register in the Udyam registration portal. Such registration shall be required to be completed before applying and proof of registration to be submitted 

a)       The customer who wish to apply for restructuring must have been impacted financially by the lockdowns due to COVID-19 pandemic in the form of reduction / loss of income which can be substantiated through

                 i.            Reduction / suspension in salary

                 ii.            Job loss.

                 iii.            Closure of Business /Reduced business volumes

b)       The application for restructuring will be reviewed by the bank based on documents / information provided at the time of restructuring, detailed due diligence on viability of customer cash flows, responses provided by customer and repayment behavior of the customer in recent past 

Restructuring options will be available on login portal. Exact tenor and EMI will be decided based on assessment by the bank.

Yes, the tenure and EMI will be recalculated and advised to you during the restructuring process.

The bank may levy a fee of 0.35% for loans above INR 10Lakhs for restructuring a loan.

The bank may charge additional interest of 0.50% for loans above INR 10Lakhs in the form of risk premium over and above the current rate of interest for the remaining tenure of the loan. 

Yes, customers must apply separately for each loan. 

Yes. This would have an impact on your credit standing. As per the regulatory guidelines advised by RBI, your loan/credit facility will be reported to the credit bureau.

All customers of the bank are eligible for restructuring irrespective of the moratorium applied (from Mar – 20 to Aug – 20) status subject to the borrower meeting the bank’s approved restructuring policy and the regulatory guidelines for restructuring.

The last date to apply for relief under the framework is September 24, 2021. 

All borrowers/co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.

No, additional loans are not allowed under this framework.

Yes, standard accounts as of March 31, 2021 are allowed for restructuring irrespective of subsequent status.

No, NPA accounts as of March 31, 2021 are not allowed for restructuring irrespective of subsequent status.

The following type of borrower(s) / credit facility(ies) are not eligible for restructuring under RBI’s Resolution Framework:

a.       Farm credit as listed in Paragraph 6.1 of Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 dated July 7, 2016 (as updated) or other relevant instructions as applicable to specific category of lending institutions.

b.       Loans to Primary Agricultural Credit Societies (PACS), Farmers' Service Societies (FSS) and Large sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture.

c.        Exposures of lending institutions to financial service providers. Financial service providers shall have the same meaning as in sub-section (17) of Section 3 of the Insolvency and Bankruptcy Act, 2016.

d.       Exposures of lending institutions to Central and State Governments; Local Government bodies (e.g. Municipal Corporations); and, body corporates established by an Act of Parliament or State Legislature.

e.       MSME borrowers whose aggregate exposure to lending institutions collectively, is INR 25 Crores or less as on March 31, 2021.

f.         Credit facilities provided by lending institutions to their own personnel/staff

Small Businesses including those engaged in wholesale and retail trade, other than those classified as MSME, are eligible for application for restructuring, provided the lending institutions have an aggregate exposure not exceeding INR 25 Crores as on March 31, 2021 to these individuals / entities.

a.       JLG Loan for Agri Allied activities like dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture, then it will be allowed to be restructured under the resolution framework.

b.       JLG Loans for Farm Credit like KCC, Pre and Post Harvest activities, Loan against Hypothecation of Crop Produce: Not eligible.

c.        JLG Loans for other than Point a & b above: Will be allowed to be restructured under the resolution framework depending on the end use of the loan.