Bajaj Finserv loan restructuring

As per the RBI guidelines on the resolution framework for COVID-19 related stress issued on 5 May 2021, Bajaj Finance has provided a one-time resolution plan to customers who approach them to avail it. This plan is subject to the conditions specified in the Resolution Framework 2.0: Resolution of COVID-19 related stress of individuals and small businesses, as mentioned in the reference DOR.STR.REC.11/21.04.048/2021-22, dated 5 May 2021.

To be eligible for the resolution plan, the customer should have been classified as 'Standard' (meaning no delinquent history with loans) as of 31 March 2021. The details regarding this can be found on the Bajaj Finance website, specifically in the policy on resolution framework 2.0 for COVID-19-related stress and loan restructuring FAQs 2021. It's important to note that the RBI announced that loan restructurings would be available until 30 September 2021.

Bajaj Finance reviews the loan restructuring requests of eligible customers based on the impact of COVID-19 and guidance from the RBI and Bajaj Finance Limited's policy. However, it's worth noting that as per RBI's guidelines, the deadline for availing of this facility was 30 September 2021. Therefore, no further restructuring can be offered under the RBI's restructuring scheme. If you have concerns or grievances related to loan cancellation, you can find information about loan cancellation grievances on their website.

Frequently asked questions

What is Bajaj Finance loan restructuring?

The economic fallout caused by the COVID-19 pandemic has led to significant financial stress for some of the customers. In line with RBI regulation DOR.STR.REC.11/21.04.048/2021-22, a resolution plan 2.0 could be availed by affected customers, having good repayment track record [customers classified as ‘Standard’ (A standard customer is one who has no delinquent history with loans) as per RBI announcement 5 May 2021] and who were eligible as per Bajaj Finance Limited’s Policy.

The purpose of resolution plan 2.0 was to assist customers in reducing the resultant stress. This may potentially impact the long-term viability of the business due to the debt burden becoming disproportionate relative to their cash flow generation abilities. The assistance to the customers under the resolution plan is by reducing the loan EMI amount by extending the loan tenure.

What are the eligibility criteria for Bajaj Finance loan restructuring?

The eligibility criteria for Bajaj Finance loan restructuring are the following.

  • Customer accounts should be regarded as ‘Standard’ as of 31 March 2021.
  • Customers must have a good repayment track record.
  • Borrowers need to meet any additional requirements set forth by Bajaj Finance Limited.
  • Submit acceptance and adherence to the terms and conditions of the prescribed documentation governing the same.
Can I apply for a loan restructuring?

As per the RBI circular, the last date was 30 September 2021. Since this date has passed, Bajaj Finance Limited cannot offer restructuring as per the RBI’s guidelines. We request you to clear your EMIs as per your loan repayment schedule.

If I have applied for the resolution plan, should I consider my request accepted and implemented by Bajaj Finance?

No, submission application for the resolution plan of credit facility does mean acceptance by Bajaj Finance. On receipt of your request for the resolution plan, Bajaj Finance would have reviewed your application based on its internal policies and eligibility criteria. After reviewing the same, Bajaj Finance would have communicated about acceptance or the rejection of the application. If your request is accepted, the resolution plan would have been implemented after receiving your approval of the terms and conditions/ agreement governing the resolution plan.

Will my credit bureau records be impacted if I’ve applied for the implementation of the resolution plan?

If you avail of a resolution plan, credit bureau records will be updated with details of the resolution plan availed. The fact that you have availed assistance under the resolution plan in 2021 will appear in your bureau reports. However, Bajaj Finance has no role in how other banks/ financial institutions may consider the same.

How will I know whether my request for opting in for a resolution plan has been accepted by Bajaj Finance Limited?

BFL will communicate via SMS/ email whether your request for a resolution plan has been accepted or not.

What are the documents that I would need to keep handy for processing a resolution plan request?

You’ll need your salary slips and/ or a bank statement of your loan repayment account. If you meet the eligibility criteria, basis the information submitted by you, Bajaj Finance may process your resolution plan request post-acceptance of the same.

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