Restructuring of loan by urban co-operative banks (ucb)

Dear all,

I am working in co-operative bank. kIndly guide whether UCB (urban co-operative bank) can restructure non-infrastructure advances for 15 yrs. RBI circular says that it can be done for 10 yrs but there is a confusion in circular.

at one place circular mentions that board of directors to prescribe the maximu period not exceeding 15 yrs for restructured advances keeping in view the safety and soundness of advances.

Need urgent guidance. Pls. guide.

 

Replies (4)

The tenure of loan depends on the repayment left and your current repayment capability. Can I know why are you going for restructure of loan?

I just want to know rbi guideline on this. Capability etc is already assessed. My question is whether non infra loans be restricted by ucbs for total tenor of 15 yrs

As per RBI guidelines the normal debt service coverage ratio is for 10 years. Below are the guidelines :

"The repayment period of the restructured advance including the moratorium, if any, does not exceed 15 years in the case of infrastructure advances and 10 years in the case of other advances. The aforesaid ceiling of 10 years would not be applicable for restructured home loans; in these cases the Board of Directors of the banks should prescribe the maximum period for restructured advance keeping in view the safety and soundness of the advances."

I would still like to know the reason for restructuring the loan as its gonna affect your credit score very badly and in future if you need any loan you will face a difficulty. You can speak to a credit counselor who can help you with an alternative or help you with a Debt Consolidation program. You can check the credit health repair agency website who helps you to overcome this issues and makes you to credit healthy too. You can visit https://www.creditsudhaar.com/

I do not need to restructure my loan. One if our client want to restructure his loan and he is arguing for 15yrs whereas as per circular above non infra loans period is 10yrs. Hence need guidance

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