Explain the Features of the Axis Bank Personal Loan Restructuring for COVID-19?

The Axis Bank COVID-19 loan restructuring facility has been approved by RBI. The main objective of the relief measure is to take off the loan repayment burden from borrowers who are facing a difficult financial situation due to the Covid-19 pandemic. The relief comes in the form of a one-time loan restructuring facility offered by Axis Bank. Here are some of the options available under the facility:

• Moratorium and/or extension of remaining loan term up to a maximum of 24 months
• Conversion of interest accrued (or yet to be accrued) into credit facilities
• Changes in working capital sanctions 
• Rescheduling of loan payments
• A portion of the debt can be converted into equity or other marketable, non-convertible debt securities that are issued by the borrower

These options are only indicative and Axis Bank, post assessing the financial impact on the borrower, may apply any of the above-mentioned methods or a different method to offer relief to eligible borrowers depending on individual situations.

How to Apply

Borrowers who want to opt for one-time loan restructuring from Axis bank can do so by sending a request letter/ digital consent/ voice consent stating the specific reasons for making an application for resolution. Alongside, the borrowers must also mention a plan of future cash flows.

Axis Bank normally communicates its decision in writing or through email regarding the acceptance or rejection of a loan restructuring application. The bank normally reverts within 30 days of receipt of the application. Applicants need to remember that the restructuring approval decision is not guaranteed by the bank and could vary across applicants.