Restructuring will lead to increase in loan-to-value and higher EMI to income ratio
(WorldNews Business)

In a bid to offer a respite to borrowers who are unable to resume loan repayments post the moratorium period or are otherwise cash-strapped, many banks have announced the contours of the one-time restructuring option. Aside from the mandate of the loan account being standard as on March 1, 2020, banks also need to be satisfied that the borrower has indeed been affected by the pandemic -- fall in income, job loss, closure of business, etc. The restructuring of retail loans, which involves a moratorium on loan EMIs and extension (if opted) of the loan tenure,...