Loan Rescheduling vs Loan Restructuring: A Simple Guide

Loan rescheduling and restructuring are repayment arrangements that can change how an existing loan is repaid.

Loan rescheduling generally involves changing the existing repayment schedule, such as adjusting payment dates or the timing of instalments, without necessarily changing the broader loan arrangement. It may be considered when the existing repayment schedule does not align with the borrower's current circumstances. The lender reviews the loan account and determines whether a revised schedule is available.

Loan restructuring involves modifying one or more terms of an existing loan to address repayment difficulties. Depending on the approved arrangement, this may include changes to the EMI amount, loan tenure, repayment schedule, or other applicable terms. Restructuring involves a broader change to the repayment arrangement and is subject to the lender's assessment and approval. Borrowers should review the revised terms, applicable charges, and repayment schedule before accepting either arrangement.

Loan rescheduling vs loan restructuring: What is the difference?

The main difference is that rescheduling generally changes the repayment schedule, while restructuring can modify broader terms of the existing loan. Both options relate to changing an existing repayment arrangement, but they are not interchangeable. The exact meaning and availability of either option may vary as per the loan agreement and the lender's applicable process.

Neither option should be treated as automatically better. The appropriate arrangement depends on why repayment has become difficult, the existing loan terms, repayment history, and the lender's assessment.

You should discuss rescheduling or restructuring with your lender when your current repayment schedule is becoming difficult to maintain. Taking action early can help you understand the options available for your loan before missed payments continue to accumulate. If an EMI has already become overdue, review the outstanding amount and contact the lender through its official channels.

You can start by checking:

1. Your outstanding amount: Confirm the amount currently payable on the loan account.
2. Overdue EMIs: Check whether any scheduled EMI remains unpaid.
3. Repayment capacity: Review the amount you can reasonably commit towards regular repayment.
4. Existing loan terms: Check your current EMI, remaining tenure, and repayment schedule.
5. Available options: Ask the lender whether rescheduling, restructuring, or another repayment arrangement is applicable.
6. Revised terms: Review the proposed EMI, tenure, charges, and other conditions before accepting an arrangement.

If you have received a legal notice concerning unpaid loan dues, do not ignore it. Review the notice, verify the loan account details, and contact the lender through official channels to understand the amount due and the available process for addressing the account.

How can rescheduling or restructuring affect EMI and loan tenure?

A revised repayment arrangement can change the EMI, loan tenure, repayment schedule, or other applicable terms. The effect depends on the arrangement approved by the lender. For example, a restructuring arrangement may involve a revised EMI or an extension of the remaining tenure. A change in tenure can affect how long repayments continue and the total amount payable under the revised arrangement.

Before accepting revised terms, check:

• Revised EMI amount.
• Number of instalments remaining.
• Revised loan tenure.
• Total repayment obligation.
• Applicable charges.
• Revised payment dates.
• Conditions for continuing under the revised arrangement.

The terms of any restructuring arrangement, including revised EMI amount, tenure, and applicable charges, are determined by your lender at the time of assessment. No standard terms can be guaranteed in advance.

How to review your loan repayment options with Bajaj Finance

If you are finding it difficult to maintain your existing EMI, review your loan account and discuss the available repayment options with Bajaj Finance. The options available depend on your loan type, repayment history, account status, and applicable assessment. You can review your loan details through the Bajaj Finance App or My Account portal to check your outstanding amount, EMI details, and repayment status. If you need assistance with repayment, contact Bajaj Finance through its official channels to understand the options applicable to your loan. Loan rescheduling or restructuring is not automatically available for every loan. Any revised repayment arrangement is subject to the applicable assessment, terms, and approval.