What is Restructuring? RBI recently announced to open a restructuring window for stressed loans. Those accounts which had been in default for not more than 30 days as on March 1, 2020, can be restructured if the borrowers are unable to service them because of their businesses being affected by the Covid-19 pandemic. RBI has … Continue reading RBI Loan Restructuring Scheme
Why RBI’s move to increase Gold Loan LTV to 90% is a risky move
RBI recently hiked the Loan to Value (LTV) for gold loans offered by Banks for non-agricultural use from 75% to 90% until March 2021. Loan-to-value (LTV) is the amount of loan that can be offered in proportion to the value of a collateral asset which is being kept as security. LTV of 90% would mean … Continue reading Why RBI’s move to increase Gold Loan LTV to 90% is a risky move
Explained: Moratorium on Loans
What is Moratorium Moratorium here meant that the borrower can choose not to pay Interest and Principal due for the time decided. Payments are deferred.RBI has allowed Banks and NBFCs to offer Moratorium to all Term loans. Term loans here will include all kinds of retail loans such as vehicle loan, home loan,Credit card and … Continue reading Explained: Moratorium on Loans