Higher loan tenure: Banks seek clarity from RBI

MUMBAI: Lenders have sought clarification from RBI on whether the maximum two-year extension of loan tenure that has been allowed is inclusive of the time for repayment of dues during the moratorium. Bankers say those with 20-year loans, who have availed the moratorium, will see their home loans term extended by 24 months if the dues for the last six months are amortised. This would not leave them with any scope for further restructuring.

Another issue is with loans below Rs 30 lakh where lenders are allowed a loan-to-value ratio of 90%. For those who have availed moratorium in the early stages of the loan, the six-month dues would have ballooned the outstanding to well-past Rs 30 lakh. For loans above Rs 30 lakh maximum loan-to-value that can be allowed is 80%. This would place banks in violation of RBI guidelines.

With the six-month moratorium on loan repayments ending on August 31 banks have started the process of debiting dues from the account of borrowers. Several borrowers approached branches of banks and finance companies seeking a restructuring of loans and to avoid EMI debit in September.

However, they were informed by the branches that there has been no communication from their head office on restructuring and as of now, their existing repayment schedule would continue.

While RBI has said banks can provide an additional moratorium as part of restructuring scheme, lenders said it was not clear how much of a moratorium could be allowed. A senior banker said unlike the moratorium that was granted to almost anyone who asked for it, the restructuring would be made available depending on circumstances.