HDFC Credila

Resolution Framework 2.0 For Covid-19 Related Stress

HDFC Credila

The resurgence of the Covid-19 pandemic in India from March 2021 (in the form of a second wave) and the consequent containment measures to control the spread of the pandemic has impacted the economic activities and created new uncertainties. The Reserve Bank of India, with the objective of alleviating the potential stress to individual borrowers and small businesses, has issued 'Resolution Framework 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses' on May 5, 2021 vide notification no. RBI/2021-22/31 DOR.STR.REC.11/21.04.048/2021-22. The guidelines are broadly in line with the contours of the Resolution Framework 1.0, with suitable modifications.

HDFC Credila, being a Non-Banking Finance Company has put in place a Board approved policy in line with the above RBI guidelines to enable customers to apply for restructuring where the financial stress is on account of the Covid-19 pandemic.

Please click here to view HDFC Credila's COVID - 19 Restructuring Policy 2.0

Please click here to login to your account to apply for restructuring.

FAQs on Restructuring 2.0 Scheme of RBI

RBI has provided a framework to lending institutions (including NBFCs) for implementation of resolution plans to address the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. Basis the framework and regulatory guidelines, HDFC Credila Financial Services Limited "HDFC Credila" has framed its policy for the restructuring of 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 account is outstanding as on March 31, 2021.
  2. The loan account is classified as 'Standard' with HDFC Credila as on March 31, 2021.
  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 or cash flow.
  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 income and/or cash flow / financial impact due to COVID-19, HDFC Credila will assess the capability 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 filing the application from your online account. Click here to login to HDFC Credila's online portal for customers. On login, navigate to 'Apply for Restructuring' of Loan tab and submit the request with necessary information and supporting documents.

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:

  1. For salaried borrowers: Signed formal request letter, last 3 months salary slips, last 3 months savings account bank statement (in which the salary is credited). In case of loss of job, letter of discharge / termination or declaration of job loss, etc. will be required.
  2. For self-employed borrowers: Signed formal request letter, last 3 months savings account bank statements, last 12 months current account 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.
  3. Further documents relating to the students' course, visa, work permit, employment, contact details, etc. will be required.

Please login to your account to check the documents required for your application.

As per regulatory guidelines, your loan will be reported to the credit bureaus as "Restructured due to COVID-19".

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 31, 2021 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 customers 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 September 22, 2021.

If you have already availed restructuring under the Resolution Framework 1.0, you are not eligible for restructuring under this scheme. However, if you have not availed of the full benefit leading to a 24 month tenor extension in the earlier scheme which ended on 31st December 2020, you can apply for availing the incremental benefit only to the extent of increasing the period of moratorium / extension of residual tenor subject to the maximum benefit of 24 month tenor extension.