Loan Restructuring Support
Loan Restructuring Support helps struggling businesses renegotiate repayment terms, extend tenures, or modify interest rates to restore liquidity and avoid defaults.
Types Of Loan Restructuring Support
Restructuring can be classified by the method and financial objective.
Debt Rescheduling
Adjusting repayment schedules for manageable installments.
Interest Rate Revision
Negotiating reduced interest rates to ease the burden.
Conversion of Debt to Equity
Converting loans into equity to balance liabilities.
Refinancing Options
Replacing high-cost loans with favorable terms.
One-Time Settlement
Facilitating final settlements to close bad debts.
Regulatory Restructuring
Assisting in compliance with RBI restructuring schemes.
Why Loan Restructuring Support Is Important?
Liquidity Support
Immediate relief for distressed borrowers.
Negotiation Expertise
Deals with lenders on favorable terms.
Compliance Alignment
RBI and legal adherence.
Customized Plans
Based on financial capacity.
FAQs
What is Loan Restructuring?
It’s the process of modifying loan terms to aid repayment.
Who can apply?
Businesses facing financial distress or reduced cash flow.
Is collateral affected?
Not necessarily—it depends on agreement terms.
Does it impact credit score?
Temporarily, but it improves after successful repayment.
Is RBI approval needed?
For certain structured schemes, yes.
Why is this important?
It prevents insolvency and ensures business continuity.