HDFC Credila

Resolution Framework For Covid-19 Related Stress

FAQs on Restructuring Scheme of RBI

HDFC Credila
RBI has provided a framework to lending institutions (including NBFCs) for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for several customers. Basis the framework and regulatory guidelines, HDFC Credila Financial Services Limited “HDFC Credila” has framed its policy for the restructuring of the education loans of individuals who have been materially impacted due to the COVID-19 pandemic.

All Education Loans provided by HDFC Credila are covered in the restructuring scheme, subject to meeting the below eligibility requirements

  1. The loan(s) is/are classified as Standard, but not in default for more than 30 days with HDFC Credila as on March 1, 2020 are eligible for restructuring.
  2. The loan continues to remain as standard till the date of invocation (date on which the customer and HDFC Credila have agreed to proceed with the resolution).
  3. The customer (any one of borrower / co-borrower) who has been primarily servicing the loan has been impacted financially by the COVID-19 pandemic in the form of significant reduction/loss of income.
  4. The customer meets the other eligibility conditions as per HDFC Credila’s policy.

On the basis of the documents / information provided by the customers which establish reduction in the income and/or cash flow / financial impact due to COVID-19, HDFC Credila will assess the viability of the customer to pay the restructured PMIIs/ EMIs over extended tenure, before granting the restructuring. Further to the viability calculations, the repayment track record of the customer will also be factored in the restructuring decision.

In case you are an eligible customer and your request for restructuring has been approved by HDFC Credila, you will be able to reduce your cash flow burden in form of revised PMII/EMIs based on the assessment done by the Credit & Underwriting Team of HDFC Credila, subject to an increase in balance tenure of the loan within the permissible limits as prescribed in the RBI guidelines.

You may apply for restructuring by sending an email to We will get back to you with the details of the documentation required.

In order to assess your application to avail restructuring, you need to submit the following documents giving details about the pre-COVID and current status of your employment or business.

For salaried borrowers - salary slips (both for the pre-COVID period i.e. February 2020 and the latest salary slips for last 3 months), bank account statement (in which the salary is credited) from February 1, 2020 to date, in case of loss of job, letter of discharge / termination or declaration of job loss, etc. will be required.

For self-employed borrowers - bank statements, GST returns, declaration to the effect by the borrower that their business has been adversely impacted by COVID 19 will be required intimating the status of their cash flows pre COVID and post COVID, etc.

Further documents relating to the Students’ course, visa, work permit, employment, contact details, etc. will be required. You may contact your branch or write to us on for further details.

Such loan accounts are ineligible for resolution under the guidelines of this Resolution Framework as it is applicable only for eligible borrowers which were classified as standard, but not in default for more than 30 days as on March 01, 2020.

As per regulatory guidelines, your loan will be reported to the credit bureau as “Restructured”.

Please note that as per regulatory guidelines, restructuring has to be reported at a borrower level to the credit bureaus and hence all the loans of the borrower with HDFC Credila will be classified and reported as “Restructured” even if the borrower has taken restructuring for only one loan.

The rate of interest on your loan will be revised on restructuring for the remaining tenure of the loan as HDFC Credila will have to maintain higher regulatory capital. The increase in the rate of interest will vary based on the quantum of relief sought by the borrower, in addition to other parameters. The aforesaid increase would be capped to a maximum of 50 basis points.

Only loans outstanding as on March 01, 2020 are eligible for restructuring as per the RBI guidelines.

If eligible, the total loan amount outstanding as on the date of invocation will be eligible for restructuring.

The scheme for restructuring is open to all eligible customers (who have availed an education loan before March 01, 2020 and fulfil the conditions specified in question number 2) of HDFC Credila irrespective of the moratorium status, subject to the customer meeting all the eligibility criteria.

The last date to apply (complete with all supporting documentation) for relief under the framework is December 24, 2020.