FAQ’s – Restructuring 2.0

The resurgence second wave of Covid-19 pandemic in India from March 2021 and the consequent containment measures to control the spread of the pandemic has impacted the economic activities and created new uncertainties. As a measure to alleviate the potential stress, the Reserve Bank of India (RBI) vide notification dated May 5, 2021 has come with 'Resolution Framework 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses.’ The guidelines are broadly in line with the contours of the Resolution Framework 1.0, with suitable modifications. JM Financial Products Limited (the Company/Lender), being a Non-Banking Finance Company has put in place a Board approved framework in line with the above RBI guidelines to enable its customers to apply for restructuring where the financial stress is on account of Covid-19 pandemic. Please click here to view the Companys’ ‘Resolution Framework 2.0 for Covid-19 Related Stress Accounts’

RBI has provided a framework to the Lenders for implementation of resolution plans for addressing the economic fallout due to the COVID-19 pandemic which has led to significant financial stress for customers. Basis the framework and regulatory guidelines, the Lender has framed its policy for the restructuring of the loan/s of individuals and entities that have been impacted due to the Covid-19 pandemic.

For more information, please refer to May 5, 2021 guidelines issued by RBI viz;

Guideline A: Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)  and

Guideline B: Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses.

  • Loans given to MSME’s with Udyam certificate (borrower should be classified as a MSME on March 31, 2021 in terms of Gazette Notification S.O. 2119 (E) dated June 26, 2020) to be considered under Guideline A.

  • Loans given to Individuals and Small Businesses (without Udyam certificate) to be considered under Guideline B.

a) Individuals and Entities that are classified as Standard with the Lender as on April 1, 2021;

b) Borrowers impacted financially by covid-19 pandemic in the form of reduction/ loss of income or cash flows;

c) Reduction of income and its financial impact on the customer will be reviewed by the Lender basis the documents / information provided which does show the drop in cash flow due to Covid-19 impact. The Lender will assess the viability of the customer to pay the restructured EMIs basis the documents provided, before granting the restructuring;

d) Apart from the viability calculations, the repayment track record of the customer, credit bureau records, utilisation of Emergency Credit Line Guarantee Scheme, utilisation of moratorium will also be factored in the restructuring decision.

You may visit the Branch or connect with your Relationship Manager and submit the request letter/application for restructuring and cover the reasons for seeking the same. On verification of the application, Lender will contact you for further process.

Based on an assessment of the cash-flow and other parameters, the Lender may, at its discretion, offer a new repayment schedule with interest and/or principal moratorium period to enable the borrower to more effectively repay their restructured loan. The balance tenure of the loan can be extended by a further period of maximum 24 months over the residual loan period.

The restructured loan amount may inter alia include outstanding principal, unpaid interest, interest to be accrued for the period for which moratorium may be granted, any additional interest or charges which may be due but unpaid upto the date of commencement of the EMI on the restructured loan.

If you had availed resolution benefits in terms of Resolution Framework 1.0 and if your moratoria or residual tenure were increased for a period of less than two years, your previous resolution plan can be modified to the extent that overall moratorium and/or extension of residual tenure granted under Restructuring 1.0 and this framework does not exceed two years.

No; EMIs and any other interest or charges will be accrued and added to the overall amount outstanding to arrive at restructured loan amount and the repayment on this total restructured loan will start on completion of moratorium period (if any).


Applicants/co-applicants will have the option to start the repayment in part or full even before completion of the moratorium period if granted.

As per regulatory guidelines, your loan/credit facility will be reported to the credit bureau as “Restructured”.

Company may levy a nominal processing fee for carrying out the re-structuring.

Whilst restructuring loans, rate of interest of loans may be revised basis assessment of risks and the company’s cost of funds as also provisioning requirements as a result of restructuring.

For all loans approved for restructuring by the Lender, applicant/co-applicants would need to sign loan documentation / agreements. All applicants / co-applicants will be required to accept the terms by putting physical signatures on the application and revised documentation / agreement(s), and these will need to be submitted at the Branch.

As per regulatory and legal requirements, all borrowers/co-borrowers of the original loan need to agree and sign on any changes in the loan structure including the restructuring agreement.

Mortgage in the form of extension may need to be executed on the restructured loan amount. The stamp duty and registration charges will be as per the applicable state laws.

Application can be made by August 31, 2021 in order to enable the Lender to have sufficient time to review and decision the application and complete the documentation.

Following documents will need to be provided along with application:

For Individuals (as applicable):

  • Bank account statement from April 1, 2020 till date for all applicants/co-applicants;
  • Income tax returns for financial year 2019, 2020 and 2021 (if filed);
  • Profit and loss statement/Balance sheet for the last 2 years;
  • Declaration by Applicant/co-applicants that business/institution affected by Covid-19;
  • Past six month’s salary slips;
  • Net-worth declaration of applicants/co-applicants.

For Entities (as applicable):

  • Bank account statement from April 1, 2020 till date for all applicants/co-applicants;
  • Income tax returns for financial year 2019, 2020 and 2021 (if filed);
  • Profit and loss statement/Balance sheet for the last 2 years;
  • Declaration by Applicant/co-applicants that business/institution affected by Covid-19; Latest Society or Trust bye-laws/change reports and school affiliation renewals;
  • Past six month’s salary slips;
  • Net-worth declaration of applicants/co-applicants.

Please do keep these documents ready before you apply, as incomplete applications are unlikely to be processed. Where needed, additional documents may be asked for by the Lender.

The restructuring letter/application to be submitted to the Lender can cover one or all the loans. Lender shall assess the application on regulatory guidelines, on the Covid-19 impact and the viability of the repayment plan before taking a decision on the same.

Lender will process and communicate the status of the application to the customers in 15 to 21 days post receipt of completed application along with prescribed documentation.

Lender will communicate the status of the restructuring request vide text message or email on the registered phone number or email address.

Lender may consider the additional financing request from the applicant/co-applicants on the basis of assessment against the policy norms.