Restructured Loan

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Restructured Loan

A loan for which the parties have agreed to alter the terms, usually to make them more favorable to the borrower. For example, the borrower may restructure a loan to receive a lower interest rate or monthly payment. Restructured loans are most common if the borrower states that he/she can no longer afford payments under the old terms. For example, a borrower may have to accept a new job with less income, forcing a tighter budget.
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New consumer loans increased to e1/417.3m, compared with e1/414.2 million in the previous month, of which e1/4 0.5m comprised renegotiated or restructured loans.
Such restructured loans may, however, attract normal rate of interest from the second year onwards as per the policy laid down by the Reserve Bank of India (RBI).
We encourage those who are paying their restructured loans in installment terms to ensure that they are paying their loan obligations on time to eventually regain their good standing with the pension fund,' said Ignacio.
Total restructured loans amounted to e1/47.10 bln of which e1/44.86 bln were still classified as non-performing loans.
Such restructured loans are to attract a normal rate of interest from the second year onwards, the RBI said.
Within five months of the second LRP implementation, the SSS has already condoned P4.3-billion penalties, resulting in P4.9 billion in restructured loans.
'Within five months of the second loan restructuring program implementation, the SSS has already condoned P4.3 billion penalties, resulting in P4.9 billion in restructured loans,' Dooc added.
Fitch's view of BGPB's stronger loan quality is driven by the bank's consistently low non-performing loans (NPLs; overdue by more than 90 days) and limited restructured loans. In addition, impairment charges and write-offs have been low, as is the reported post-devaluation debt leverage of most of the bank's largest borrowers.
They are also not sure whether the new rules require them to get external ratings for all restructured loans.
He said that the banks wanted to treat the restructured loans as regular loans which is not possible.
The volume of restructured loans is significant (24.76 billion lei, representing 12 percent of total loans, September 2015).
India Ratings and Research, a unit of credit rating agency Fitch, expects banks to restructure loans worth between ` 60,000 crore and ` 1 lakh crore in the next five months with the Reserve Bank of India's ( RBI) new rules ending the difference between restructured loans and NPAs coming into effect from April FY15.