- How does the Fullerton Loan Restructuring Scheme help borrowers emerge from the COVID-19 crisis?
- What types of loans will come under Fullerton Loan Restructuring Scheme? How to Apply for it? Know all these and much more!
As you all know that the moratorium period provided by the Reserve Bank of India (RBI) ended on August 31, 2020. Within this period, RBI allowed customers to not pay their loan installments. However, lenders kept charging interest on that amount. Now, the RBI has announced a Restructuring Plan for loans taken by borrowers who are affected financially by the COVID-19 pandemic. Keeping in line with the announcement, Fullerton India has also announced its One Time Loan Restructuring Scheme. Through Fullerton Loan Restructuring Scheme, borrowers will be able to extend their overall tenure during which the outstanding loan balance can be paid off.
If you are an existing Fullerton India customer and want to know about the Restructuring process, this article could be useful for you. We will discuss all the benefits a customer can get with the Fullerton Loan Restructuring Scheme, along with Eligibility, Application Process, Required Documents, etc. So, keep reading!
Fullerton Loan Restructuring Scheme Benefits
Existing Fullerton borrowers can get a wide range of benefits with the Fullerton Loan Restructuring Scheme. The primary aim of this scheme is to help those individuals who have been financially struggling due to the COVID-19 pandemic and unable to repay their loans. With this scheme, borrowers can get their repayment period extended by a maximum of 24 months. Some of the benefits that customers will get through this scheme are shown below. Do check!
- Customers can increase their overall tenure during which they can repay their outstanding loan balance. However, the balance tenure of the loan (with or without payment moratorium) cannot be extended by more than 2 years (24 months).
- With an extended tenure, the EMI amount will be reduced which will automatically reduce their monthly repayment commitment. However, there’s a catch ― the overall interest payable over the tenure will increase due to the extension.
- Customers who had not taken the Moratorium given between March-August 2020 can also apply for the Fullerton Loan Restructuring Scheme. Fullerton will assess their applications after going through factors such as Past Repayment behavior, Impact on Income, etc.
- One important thing is to remember is that if you don’t apply for this scheme and stop paying the EMIs, your loan will not be restructured automatically. Any delay in repayment will cost you penalty charges.
- Customers don’t need to worry about their credit history as Fullerton will report your loan/credit facility to all the credit bureaus as ‘Restructured’
- If a customer has multiple loans, he or she will have to request for each loan to be restructured separately with this scheme
Fullerton Loan Restructuring Scheme Eligibility
There is one important thing you need to remember that not every individual will get a Fullerton Loan Restructuring Scheme. Fullerton has stated a few conditions that a customer needs to fulfill if he/she wants to get loan restructuring benefits. So, what are those conditions? We are showing them below. Have a look.
- The first and foremost condition is that an applicant shouldn’t have any kind of overdue of more than 30 days on EMI or Interest payment on March 1, 2020. On the other hand, for MSME borrowers, this period is 89 days with the borrowing amount below INR 25 crores.
- Fullerton may reject your application if there has been any default on your loan/ credit facilities
- There should have been some financial impacts on the borrower due to the COVID-19 pandemic. This effect can be in the form of Income Reduction (Salary Cuts) or Loss of Income (Job Loss or Business Closure).
- How will Fullerton determine the eligibility of an applicant? Well, it will be according to the reduction in income and the financial impact caused by it. Fullerton will evaluate the eligibility according to the documents & information provided by the applicant. After this, the final decision will be taken.
- The eligibility will also be decided after assessing the past repayment behavior of the applicant and responses given during the RBI Moratorium provided between March-August 2020.
Fullerton Loan Restructuring Scheme Pricing Change
You would like to know if there will be any fees or changes in the interest rates after you have applied for the Fullerton Loan Restructuring Scheme. Well, customers will need to pay an additional loan restructuring fee that will add to their overall cost. Also, there will be an increase in the overall interest, which will make your loan expensive.
Which products will be covered under the Fullerton Loan Restructuring Scheme?
One of the crucial things to know before applying for the restructuring scheme is the types of loans that will be covered under this scheme. We are showing all the eligible lending products for the restructuring scheme. Please check!
- Loan Against Securities
- Loan Against Property
- Personal Loans
- Two-wheeler Loans
- Commercial Vehicle Loans
- Business Loans
- MSME Loans/ Secured Business Loans
- Home Loans
Now that you have information about which loans can be restructured under this scheme, you should also know what type of loans will not be covered under the Fullerton Loan Restructuring Scheme. We are showing all such loans. Have a look!
- Loans to Individuals or Entities for Agricultural Purposes (Such loans are classified as Agricultural Loans by Fullerton India)
- Loans offered to Agricultural Credit Societies, Financial services providers, Central, State, and Local Government Bodies and Fullerton India employees
- Exposures of Housing Finance Companies where the account has been rescheduled after March 1, 2020
- Loans given for Commercial Usage will be entitled to claim relief under the MSME Guidelines
How to Apply for Fullerton Loan Restructuring Scheme?
After having so much information about the Fullerton Loan Restructuring Scheme, you should know about the application process. We are showing the steps that a customer needs to follow. Please check.
- The first step is to visit the official website of Fullerton where you will see the ‘Contact Us’ link on the top menu. Click on that link.
- After that, select the ‘Existing Customer’
- Choose the loan that you wish to get restructured. After this, enter the Unique Loan Account Number (LAN) for this respective loan. LAN is the 14 or 15 digit number that defines your loan account at Fullerton India.
- After this, enter your Registered email id and Mobile Number.
- From both the dropdowns you will see select ‘One-time Loan Restructuring’.
- After selecting, you will need to enter all the necessary information like your name, address, details of the COVID-19 impact on your income, etc. Fill all the details correctly as any errors can lead to the rejection of your application.
- Complete the ‘Captcha’ and click on the ‘Submit’ button
- In case you want to opt for the Fullerton Loan Restructuring Scheme for separate loans, you will need to submit separate requests. While doing this, make sure to enter the LAN for each loan correctly.
Required Documents for Fullerton Loan Restructuring Scheme
Documentation is an important part of the Fullerton Loan Restructuring Scheme. Fullerton will assess the economic impact caused by the COVID-19 pandemic based on your financial documents. Also, Fullerton may ask for additional documents depending on the applicant’s profile and eligibility. Here are the documents that you need to submit. Please check.
For Salaried Borrowers
- Latest Salary Slips and Bank Statements from February – August 2020
- In the case of co-applicants, all parties will need to submit the documents
For Self-employed Borrowers/ Entities
- Latest Bank Statements from February – August 2020
- GST Returns
- Income Tax Returns
- Udyam Certificate
- In the case of multiple co-applicants, all parties will need to submit the documents