Currently, many banks give loans to buy houses or cars. Apart from this, many people also take personal loans to meet their general needs. The loan is easily found, but people have difficulty in paying EMI. Many times people come to such a situation that they are not able to repay EMI easily. RBI has made a rule to get rid of such a problem.
Credit Information Bureau India Limited (CIBIL) monitors people’s loan or credit card expenses. A report has come out which has shocking revelations. It states that the habit of taking unprotected loans (credit card expenses) is increasing among the people. Personal loans have also increased from pre-cocid levels. This report is a warning for the Reserve Bank of India.
There are many people who were having difficulty in repaying the loan. Many guidelines have been created by RBI to provide relief to such people. This loan is a major relief for defaulters, as it gives more time to repay the loan. According to RBI guidelines, if you are unable to repay the loan, you can get it restructured. If a person’s EMI is 50 thousand rupees, then he can restructure this amount and can also change its timing. This can reduce its EMI from 0 thousand to 25 thousand rupees.
You can decide this amount as per your convenience. If someone does this, he gets immediate relief from the burden of EMI and he survives the tag of the loan defaulter. If a person becomes a loan defaulter, both his credit history and health deteriorate. This also causes your CIBIL score to deteriorate, which can stop the chances of getting a loan in the future.