Loan/Debt Restructuring
Loan/Debt Restructuring—A Fresh Start for Financial Recovery
When borrowers face financial hardships due to income loss, medical emergencies, market fluctuations, or unforeseen events like pandemics or business downturns, loan repayment often becomes challenging. In such cases, loan restructuring serves as a powerful financial remedy, offering a chance to renegotiate loan terms and avoid defaults or legal action.
Bank Samadhan helps individuals and businesses navigate the complex process of loan restructuring, ensuring that revised terms are fair, feasible, and aligned with both lender policies and borrower capabilities. By working within the framework set by the RBI and financial institutions, we help prevent credit score damage while restoring financial stability.
What is Loan Restructuring?
Loan restructuring refers to the modification of existing loan terms to make repayment more manageable for borrowers under financial stress. Instead of declaring a loan as defaulted or initiating recovery, lenders agree to revise terms such as tenure, EMI amount, interest rate, or even allow a moratorium.
Common Loan Types Eligible for Restructuring
Personal loans
Business and SME loans
Home loans
Education loans
Car/Vehicle loans
Credit card debts
Loan against property
Working capital loans
Loan Restructuring Solutions We Help Facilitate
Tenure Extension – Spreading out repayment across a longer period to reduce monthly EMIs
Interest Rate Reduction – Negotiating lower interest rates where possible
EMI Moratorium – Temporary pause in repayments to ease short-term financial stress
Debt Consolidation – Merging multiple loans into a single manageable loan
Principal Reduction (Rare cases) – Possible in select settlements or compromise cases
Flexible Repayment Schedules – Customized payment options aligned with cash flow
Restructuring under RBI Guidelines – Ensuring compliance and eligibility under regulatory schemes
Eligibility Criteria for Loan Restructuring
Borrower must prove genuine financial hardship (job loss, business loss, health crisis, etc.)
Loan account should be classified as standard or sub-standard, not fully written-off
Borrower must not be wilfully defaulting or involved in fraudulent activity
Timely application is essential—preferably before the account turns into NPA (Non-Performing Asset)
Benefits of Loan Restructuring
Avoids legal action, repossession, or auction of collateral
Protects credit score by preventing full default
Reduces financial burden during income disruptions
Provides time to recover without immediate EMI pressure
Offers a collaborative solution between lender and borrower
Promotes responsible repayment culture and financial rehabilitation
Tips for Effective Loan Restructuring
Always apply before your account becomes an NPA
Provide complete and honest information about your financial condition
Maintain communication with your lender even during hardship
Keep records of all written approvals and modified agreements
Review the revised EMI structure and ask questions before signing
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